Insiders who bought US$272k worth of Piedmont Office Realty Trust, Inc.'s (NYSE:PDM) stock at an average buy price of US$15.72 over the last year may be disappointed by the recent 5.0% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$222k, which is not great.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Piedmont Office Realty Trust
The Chief Accounting Officer & Senior VP, Laura Moon, made the biggest insider sale in the last 12 months. That single transaction was for US$123k worth of shares at a price of US$16.09 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$12.85. So it may not tell us anything about how insiders feel about the current share price. Laura Moon was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 17.30k shares for US$272k. On the other hand they divested 7.63k shares, for US$123k. Overall, Piedmont Office Realty Trust insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Piedmont Office Realty Trust Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Piedmont Office Realty Trust. In total, insiders bought US$54k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Insider Ownership Of Piedmont Office Realty Trust
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Piedmont Office Realty Trust insiders own about US$19m worth of shares. That equates to 1.2% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Piedmont Office Realty Trust Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Insiders likely see value in Piedmont Office Realty Trust shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 4 warning signs for Piedmont Office Realty Trust (2 are potentially serious!) that we believe deserve your full attention.
Of course Piedmont Office Realty Trust may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here