We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 Killam Apartment Real Estate Investment Trust (TSE:KMP.UN).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. 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 it is perfectly logical to keep tabs on what insiders are doing. 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'.
Killam Apartment Real Estate Investment Trust Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Independent Trustee, Karine MacIndoe, sold CA$406k worth of shares at a price of CA$16.61 per share. That means that even when the share price was below the current price of CA$20.36, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 31.6% of Karine MacIndoe's stake.
We note that in the last year insiders divested 28286 shares for a total of CA$475k. In the last year Killam Apartment Real Estate Investment Trust insiders didn't buy any company stock. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Killam Apartment 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.8% of Killam Apartment Real Estate Investment Trust shares, worth about CA$34m. 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 Killam Apartment Real Estate Investment Trust Insiders?
The fact that there have been no Killam Apartment Real Estate Investment Trust insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Killam Apartment Real Estate Investment Trust insiders. The modest level of insider ownership is, at least, some comfort. Of course, the future is what matters most. So if you are interested in Killam Apartment Real Estate Investment Trust, you should check out this free report on analyst forecasts for the company.
Of course Killam Apartment 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.
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.
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 firstname.lastname@example.org. 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.