Pebblebrook Hotel Trust (NYSE:PEB) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 6.8%, resulting in a US$168m rise in the company's market capitalisation. As a result, their original purchase of US$529k worth of stock is now worth US$645k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Pebblebrook Hotel Trust Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chairman, Jon Bortz, sold US$494k worth of shares at a price of US$22.44 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$20.22. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Jon Bortz. Notably Jon Bortz was also the biggest buyer, having purchased US$529k worth of shares.
Happily, we note that in the last year insiders paid US$529k for 31.90k shares. On the other hand they divested 22.00k shares, for US$494k. In total, Pebblebrook Hotel Trust insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Pebblebrook Hotel Trust Insiders Bought Stock Recently
Over the last quarter, Pebblebrook Hotel Trust insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$529k for shares in the company -- and none sold. That shows some optimism about the company's future.
Does Pebblebrook Hotel Trust Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.4% of Pebblebrook Hotel Trust shares, worth about US$38m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Pebblebrook Hotel Trust Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Pebblebrook Hotel Trust we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Pebblebrook Hotel 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.
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.
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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.
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