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American Assets Trust, Inc. (NYSE:AAT) shareholders (or potential shareholders) will be happy to see that the Chairman & CEO, Ernest Rady, recently bought a whopping US$1.0m worth of stock, at a price of US$29.73. While that only increased their holding size by 0.5%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At American Assets Trust
Notably, that recent purchase by Ernest Rady is the biggest insider purchase of American Assets Trust shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$29.28). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Ernest Rady.
Ernest Rady purchased 268.39k shares over the year. The average price per share was US$35.65. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
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. It's great to see that American Assets Trust insiders own 11% of the company, worth about US$240m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The American Assets Trust Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about American Assets Trust. Nice! 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, American Assets Trust has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
Of course American Assets Trust 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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