Chairman & CEO Ernest Rady Just Bought A Handful Of Shares In American Assets Trust, Inc. (NYSE:AAT)
Those following along with American Assets Trust, Inc. (NYSE:AAT) will no doubt be intrigued by the recent purchase of shares by Ernest Rady, Chairman & CEO of the company, who spent a stonking US$1.7m on stock at an average price of US$30.31. While that only increased their holding size by 0.7%, it is still a big swing by our standards.
View our latest analysis for American Assets Trust
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. That means that an insider was happy to buy shares at above the current price of US$29.69. 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. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Ernest Rady was the only individual insider to buy shares in the last twelve months.
Ernest Rady purchased 352.66k shares over the year. The average price per share was US$33.81. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
American Assets Trust 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.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that American Assets Trust insiders own 11% of the company, worth about US$249m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At American Assets Trust Tell Us?
It's certainly positive to see the recent insider purchase. 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. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, American Assets Trust has 2 warning signs (and 1 which is a bit concerning) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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