It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Cominar Real Estate Investment Trust (TSE:CUF.UN).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
The Last 12 Months Of Insider Transactions At Cominar Real Estate Investment Trust
Executive VP & CFO Heather Kirk made the biggest insider purchase in the last 12 months. That single transaction was for CA$198k worth of shares at a price of CA$12.80 each. So it’s clear an insider wanted to buy, even at a higher price. 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. It’s not at all bad to see insiders buy shares at or above current prices.
Over the last year, we can see that insiders have bought 45.40k shares worth CA$584k. On the other hand they divested 15.69k shares, for CA$191k. In total, Cominar Real Estate Investment Trust insiders bought more than they sold over the last year. The average buy price was around CA$12.85. These transactions suggest that insiders have considered the current price of CA$11.12 attractive. The chart below shows insider transactions 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders at Cominar Real Estate Investment Trust Have Sold Stock Recently
Over the last three months, we’ve seen a bit of insider selling at Cominar Real Estate Investment Trust. Executive Vice-President of Acquisitions Todd Bechard divested only CA$26k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn’t bother us.
Insider Ownership of Cominar Real Estate Investment Trust
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It’s great to see that Cominar Real Estate Investment Trust insiders own 0.2% of the company, worth about CA$5.1m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Cominar Real Estate Investment Trust Insiders?
We note a that there’s been a little more insider selling than buying, recently. But the difference isn’t enough to have us worried. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it’d be more encouraging if Cominar Real Estate Investment Trust insiders bought more shares in the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Cominar Real Estate Investment Trust.
Of course Cominar Real Estate Investment Trust may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.