We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell True North Commercial Real Estate Investment Trust (TSE:TNT.UN), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
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The Last 12 Months Of Insider Transactions At True North Commercial Real Estate Investment Trust
In the last twelve months, the biggest single purchase by an insider was when President Daniel Drimmer bought CA$798k worth of shares at a price of CA$6.38 per share. So it’s clear an insider wanted to buy, even at a higher price. Their view may have changed since then, but at least it shows they felt optimistic at the time. It’s not at all bad to see insiders buy shares at or above current prices.
Happily, we note that in the last year insiders bought 384.80k shares for a total of CA$2.4m. In total, True North Commercial Real Estate Investment Trust insiders bought more than they sold over the last year. The average buy price was around CA$6.20. This is nice to see since it implies that insiders might see value around current prices (around CA$6.12). The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
True North Commercial Real Estate Investment Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at True North Commercial Real Estate Investment Trust Have Bought Stock Recently
It’s good to see that True North Commercial Real Estate Investment Trust insiders have made notable investments in the company’s shares. In total, insiders bought CA$806k worth of shares in that time, and we didn’t record any sales whatsoever. This makes one think the business has some good points.
Does True North Commercial Real Estate Investment Trust Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. True North Commercial Real Estate Investment Trust insiders own about CA$27m worth of shares. That equates to 7.8% 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 Do The True North Commercial Real Estate Investment Trust Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in True North Commercial Real Estate Investment Trust shares, given these transactions (along with notable insider ownership of the company). I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free .
But note: True North Commercial Real Estate Investment Trust may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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 firstname.lastname@example.org.