We wouldn't blame Rexford Industrial Realty, Inc. (NYSE:REXR) shareholders if they were a little worried about the fact that Michael Frankel, the Co-CEO & Director recently netted about US$3.1m selling shares at an average price of US$47.51. Probably the most concerning element of the whole transaction is that the dump amounted to 92% of their entire holding.
Rexford Industrial Realty Insider Transactions Over The Last Year
Notably, that recent sale by Michael Frankel is the biggest insider sale of Rexford Industrial Realty shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$46.18. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
We note that in the last year insiders divested 113447 shares for a total of US$5.2m. Insiders in Rexford Industrial Realty didn't buy any shares in the last year. 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Rexford Industrial Realty Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Rexford Industrial Realty insiders own 0.3% of the company, worth about US$14m. 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 Rexford Industrial Realty Insiders?
Insiders sold Rexford Industrial Realty shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Rexford Industrial Realty 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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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.