Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Wheeler Real Estate Investment Trust
The insider Daniel Khoshaba made the biggest insider purchase in the last 12 months. That single transaction was for US$138k worth of shares at a price of US$4.21 each. That means that an insider was happy to buy shares at above the current price of US$2.31. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Wheeler Real Estate Investment Trust insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Wheeler Real Estate Investment Trust
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 29% of Wheeler Real Estate Investment Trust shares, worth about US$6.6m. 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 Do The Wheeler Real Estate Investment Trust Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Wheeler Real Estate Investment Trust shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Wheeler Real Estate Investment Trust and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Wheeler Real Estate Investment Trust has 2 warning signs we think you should be aware of.
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.
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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.