Bullish insiders bet UK£880k on Tritax Big Box REIT plc (LON:BBOX)
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Tritax Big Box REIT plc (LON:BBOX), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Tritax Big Box REIT
The Last 12 Months Of Insider Transactions At Tritax Big Box REIT
In the last twelve months, the biggest single purchase by an insider was when CEO of Tritax Management LLP Colin Godfrey bought UK£146k worth of shares at a price of UK£2.18 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£1.97). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Tritax Big Box REIT insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Tritax Big Box REIT is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Tritax Big Box REIT Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Tritax Big Box REIT. Overall, seven insiders shelled out UK£387k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.5% of Tritax Big Box REIT shares, worth about UK£20m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Tritax Big Box REIT Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Tritax Big Box REIT insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Tritax Big Box REIT has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
Of course Tritax Big Box REIT may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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