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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Artis Real Estate Investment Trust (TSE:AX.UN), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
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. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
Artis Real Estate Investment Trust Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Ronald Joyce for CA$4.0m worth of shares, at about CA$9.91 per share. That implies that an insider found the current price of CA$11.61 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months insiders paid CA$5.9m for 591k shares purchased. In the last twelve months Artis Real Estate Investment Trust insiders were buying shares, but not selling. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Artis Real Estate Investment Trust Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Artis Real Estate Investment Trust. Not only was there no selling that we can see, but they collectively bought CA$70k worth of shares. This makes one think the business has some good points.
Does Artis Real Estate Investment Trust Boast High Insider Ownership?
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Artis Real Estate Investment Trust insiders own 13% of the company, worth about CA$206m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Artis Real Estate Investment Trust Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Artis Real Estate Investment Trust insiders are well aligned, and quite possibly think the share price is too low. Nice! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Artis Real Estate Investment Trust.
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 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.
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. Thank you for reading.