Even if it's not a huge purchase, we think it was good to see that Glade Knight, the Executive Chairman of Apple Hospitality REIT, Inc. (NYSE:APLE) recently shelled out US$81k to buy stock, at US$16.26 per share. That might not be a big purchase but it only increased their holding by 0.05%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Apple Hospitality REIT
In the last twelve months, the biggest single purchase by an insider was when Independent Director Daryl Nickel bought US$395k worth of shares at a price of US$16.44 per share. That means that even when the share price was higher than US$16.37 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
In the last twelve months Apple Hospitality REIT insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Apple Hospitality REIT is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Apple Hospitality REIT Boast High Insider Ownership?
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. Apple Hospitality REIT insiders own about US$234m worth of shares (which is 6.4% 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.
So What Do The Apple Hospitality REIT Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Apple Hospitality REIT insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! Of course, the future is what matters most. So if you are interested in Apple Hospitality REIT, you should check out this free report on analyst forecasts for the company.
Of course Apple Hospitality 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.
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.