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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Crombie Real Estate Investment Trust (TSE:CRR.UN).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
The Last 12 Months Of Insider Transactions At Crombie Real Estate Investment Trust
Over the last year, we can see that the biggest insider purchase was by James Dickson for CA$69k worth of shares, at about CA$12.66 per share. So it’s clear an insider wanted to buy, at around the current price. Of course they may have changed their mind. But this suggests they are optimistic. Nonetheless, we consider it positive if insiders want to buy at around the current share price.
Over the last year, we can see that insiders have bought 15.45k shares worth CA$196k. On the other hand they divested 30.00 shares, for CA$393. Overall, Crombie Real Estate Investment Trust insiders were net buyers last year. The average buy price was around CA$12.71. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of CA$13.68. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Crombie Real Estate Investment Trust
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. From our data, it seems that Crombie Real Estate Investment Trust insiders own 0.4% of the company, worth about CA$7.3m. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Does This Data Suggest About Crombie Real Estate Investment Trust Insiders?
It doesn’t really mean much that no insider has traded Crombie Real Estate Investment Trust shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it’d be more encouraging if Crombie Real Estate Investment Trust insiders bought more shares in the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Crombie Real Estate Investment Trust.
Of course Crombie Real Estate Investment 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 email@example.com.