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American Assets Trust, Inc. (NYSE:AAT) shareholders (or potential shareholders) will be happy to see that the Chairman, Ernest Rady, recently bought a whopping US$507k worth of stock, at a price of US$25.33. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.3%.
The Last 12 Months Of Insider Transactions At American Assets Trust
The Executive VP & CFO, Robert Barton, made the biggest insider sale in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$44.81 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$25.31. So it may not tell us anything about how insiders feel about the current share price. Robert Barton was the only individual insider to sell over the last year.
Ernest Rady purchased 43.81k shares over the year. The average price per share was US$34.82. You can see a visual depiction of insider transactions (by companies and 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!
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.
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. American Assets Trust insiders own about US$174m worth of shares (which is 8.9% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At American Assets Trust Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest American Assets Trust insiders are well aligned, and quite possibly think the share price is too low. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that American Assets Trust has 3 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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. 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.
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