It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Saul Centers, Inc.'s (NYSE:BFS) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Saul Centers
In the last twelve months, the biggest single purchase by an insider was when Chairman & CEO Bernard Saul bought US$60k worth of shares at a price of US$48.18 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$37.20). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for 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 Saul Centers insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Saul Centers is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Saul Centers
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Saul Centers insiders own 2.1% of the company, worth about US$26m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Saul Centers Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Saul Centers and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Saul Centers. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Saul Centers.
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 currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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