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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in CorEnergy Infrastructure Trust, Inc. (NYSE:CORR).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
CorEnergy Infrastructure Trust Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO, President & Chairman David Schulte for US$71k worth of shares, at about US$36.96 per share. That implies that an insider found the current (approximate) price enticing. 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. In any event it’s generally a positive if insiders are buying shares at around the current price.
In the last twelve months insiders paid US$161k for 4.48k shares purchased. In total, CorEnergy Infrastructure Trust insiders bought more than they sold over the last year. They paid about US$35.84 on average. It’s great to see insiders putting their own cash into the company’s stock, albeit at below the recent share price (US$37.70). You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
CorEnergy Infrastructure Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
CorEnergy Infrastructure Trust Insiders Bought Stock Recently
Over the last quarter, CorEnergy Infrastructure Trust insiders have spent a meaningful amount on shares. In total, insiders bought US$89k worth of shares in that time, and we didn’t record any sales whatsoever. That shows some optimism about the company’s future.
Insider Ownership of CorEnergy Infrastructure Trust
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests CorEnergy Infrastructure Trust insiders own 0.6% of the company, worth about US$2.9m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At CorEnergy Infrastructure Trust Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that CorEnergy Infrastructure Trust insiders are expecting a bright future. Of course, the future is what matters most. So if you are interested in CorEnergy Infrastructure Trust, you should check out this free report on analyst forecasts for the company.
But note: CorEnergy Infrastructure Trust may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.