Anyone interested in Dream Global Real Estate Investment Trust (TSE:DRG.UN) should probably be aware that a company insider, Duncan Newton Jackman, recently divested CA$454k worth of shares in the company, at an average price of CA$16.59 each. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.
Dream Global Real Estate Investment Trust Insider Transactions Over The Last Year
Notably, that recent sale by Duncan Newton Jackman is the biggest insider sale of Dream Global Real Estate Investment Trust shares that we've seen in the last year. That means that an insider was selling shares at below the current price (CA$16.64). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 100% of Duncan Newton Jackman's holding.
The chart below shows insider transactions (by individuals) over the last year. 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).
Insider Ownership of Dream Global Real Estate Investment Trust
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 0.5% of Dream Global Real Estate Investment Trust shares, worth about CA$15m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Dream Global Real Estate Investment Trust Insiders?
An insider hasn't bought Dream Global Real Estate Investment Trust stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Dream Global Real Estate Investment Trust makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd think twice before buying! 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 Dream Global Real Estate Investment Trust 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.
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 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.