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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Corporate Office Properties Trust (NYSE:OFC).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Corporate Office Properties Trust Insider Transactions Over The Last Year
Philip Hawkins made the biggest insider purchase in the last 12 months. That single transaction was for US$101k worth of shares at a price of US$22.54 each. That implies that an insider found the current price of US$27.68 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 Corporate Office Properties Trust insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 21442 shares worth US$505k. But they sold 8008 for US$233k. In the last twelve months there was more buying than selling by Corporate Office Properties Trust insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Corporate Office Properties Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Corporate Office Properties Trust
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.3% of Corporate Office Properties Trust shares, worth about US$9.2m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Corporate Office Properties Trust Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Corporate Office Properties Trust insiders bought more shares in the company. Of course, the future is what matters most. So if you are interested in Corporate Office Properties Trust, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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.