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Quite a few insiders have dramatically grown their holdings in Custodian REIT Plc (LON:CREI) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Custodian REIT Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Founder & Non-Executive Director Ian Mattioli bought UK£791k worth of shares at a price of UK£0.99 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£1.03. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Custodian REIT share holders is that insiders were buying at near the current price.
Custodian REIT insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and 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.
Insiders at Custodian REIT Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Custodian REIT. Overall, six insiders shelled out UK£867k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership of Custodian REIT
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. Insiders own 1.3% of Custodian REIT shares, worth about UK£6.0m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Custodian REIT Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Custodian REIT stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Custodian REIT. Our analysis shows 4 warning signs for Custodian REIT (1 is potentially serious!) and we strongly recommend you look at them before investing.
Of course Custodian REIT 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.