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Executive Chairman Arlen Nordhagen Just Bought Shares In National Storage Affiliates Trust (NYSE:NSA)

Simply Wall St
·3 min read

National Storage Affiliates Trust (NYSE:NSA) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, Arlen Nordhagen, recently bought a whopping US$1.4m worth of stock, at a price of US$27.59. Not only is that a big swing, but it increased their holding size by 34%, which is definitely great to see.

View our latest analysis for National Storage Affiliates Trust

National Storage Affiliates Trust Insider Transactions Over The Last Year

Notably, that recent purchase by Arlen Nordhagen is the biggest insider purchase of National Storage Affiliates Trust shares that we've seen in the last year. That means that even when the share price was higher than US$23.55 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While National Storage Affiliates Trust insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:NSA Recent Insider Trading, March 17th 2020
NYSE:NSA Recent Insider Trading, March 17th 2020

National Storage Affiliates Trust is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of National Storage Affiliates Trust

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. National Storage Affiliates Trust insiders own about US$17m worth of shares. That equates to 0.6% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The National Storage Affiliates Trust Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest National Storage Affiliates Trust insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for National Storage Affiliates Trust you should be aware of.

But note: National Storage Affiliates 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.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

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. Thank you for reading.