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Those following along with American Assets Trust, Inc. (NYSE:AAT) will no doubt be intrigued by the recent purchase of shares by Ernest Rady, Chairman of the company, who spent a stonking US$1.4m on stock at an average price of US$34.32. While that only increased their holding size by 0.6%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At American Assets Trust
In fact, the recent purchase by Ernest Rady was the biggest purchase of American Assets Trust shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$35.23. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for American Assets Trust share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Ernest Rady.
Ernest Rady bought 105.36k shares over the last 12 months at an average price of US$28.61. 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!
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 American Assets Trust 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. American Assets Trust insiders own 10% of the company, currently worth about US$272m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About American Assets Trust Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest American Assets Trust insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing American Assets Trust. Every company has risks, and we've spotted 3 warning signs for American Assets Trust (of which 1 is concerning!) you should know about.
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.
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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