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Agree Realty Corporation (NYSE:ADC) shareholders (or potential shareholders) will be happy to see that the Independent Director, John Rakolta, recently bought a whopping US$1.2m worth of stock, at a price of US$63.63. While that only increased their holding size by 9.0%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Agree Realty
In fact, the recent purchase by John Rakolta was the biggest purchase of Agree Realty shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$64.94 per share to be enticing. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Agree Realty insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders paid US$2.8m for 43.47k shares. But insiders sold 2.00k shares worth US$135k. In total, Agree Realty insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Does Agree Realty Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.0% of Agree Realty shares, worth about US$83m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Agree Realty Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Agree Realty insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Agree Realty. Case in point: We've spotted 3 warning signs for Agree Realty you should be aware of, and 1 of these is a bit concerning.
But note: Agree Realty 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.
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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