It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Blackwall Property Trust (ASX:BWR).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
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The Last 12 Months Of Insider Transactions At Blackwall Property Trust
Over the last year, we can see that the biggest insider purchase was by Non-Executive Director of Blackwall Fund Services Limited Joseph Glew for AU$144k worth of shares, at about AU$1.49 per share. That means that even when the share price was higher, an insider wanted to purchase shares. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. It’s not at all bad to see insiders buy shares at or above current prices.
In the last twelve months insiders paid AU$215k for 147.38k shares purchased. Overall, Blackwall Property Trust insiders were net buyers last year. They paid about AU$1.46 on average. These transactions suggest that insiders have considered the current price of AU$1.43 attractive. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at Blackwall Property Trust Have Bought Stock Recently
We saw some Blackwall Property Trust insider buying shares in the last three months. Insiders shelled out AU$26k for shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 36% of Blackwall Property Trust shares, worth about AU$34m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Blackwall Property Trust Tell Us?
Insider purchases have outweighed sales, in the last three months. But the difference isn’t much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Blackwall Property Trust and we see no evidence to suggest they are worried about the future. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .
Of course Blackwall Property Trust may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.