We'd be surprised if PS Business Parks, Inc. (NYSE:PSB) shareholders haven't noticed that the Independent Director, Jennifer Dunbar, recently sold US$273k worth of stock at US$182 per share. That sale was 38% of their holding, so it does make us raise an eyebrow.
PS Business Parks Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Director, Joseph Russell, for US$391k worth of shares, at about US$156 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$177. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 5.9% of Joseph Russell's holding.
We note that in the last year insiders divested 18233 shares for a total of US$2.9m. In the last year PS Business Parks insiders didn't buy any company stock. You can see the insider transactions (by 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!
I will like PS Business Parks better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does PS Business Parks 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. It appears that PS Business Parks insiders own 0.8% of the company, worth about US$47m. 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 PS Business Parks Insider Transactions Indicate?
Insiders sold PS Business Parks shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for PS Business Parks.
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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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.