Potential Independence Realty Trust, Inc. (NYSE:IRT) shareholders may wish to note that the Chairman & CEO, Scott Schaeffer, recently bought US$235k worth of stock, paying US$9.39 for each share. Although the purchase only increased their holding by 6.8%, it is still a solid purchase in our view.
Independence Realty Trust Insider Transactions Over The Last Year
In fact, the recent purchase by Scott Schaeffer was the biggest purchase of Independence Realty Trust shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$7.62 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 28.70k shares worth US$269k. On the other hand they divested 4000 shares, for US$53k. In total, Independence Realty Trust insiders bought more than they sold over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Insider Ownership of Independence Realty 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. Our data indicates that Independence Realty Trust insiders own about US$7.6m worth of shares (which is 0.9% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Independence Realty Trust Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Independence Realty Trust insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Independence Realty Trust. To that end, you should learn about the 5 warning signs we've spotted with Independence Realty Trust (including 1 which is a bit concerning).
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.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.