Need To Know: First Capital Realty Inc. (TSE:FCR) Insiders Have Been Buying Shares
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in First Capital Realty Inc. (TSE:FCR).
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, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
See our latest analysis for First Capital Realty
The Last 12 Months Of Insider Transactions At First Capital Realty
Chairman of the Board Dori Segal made the biggest insider purchase in the last 12 months. That single transaction was for CA$3.1m worth of shares at a price of CA$20.58 each. So it’s clear an insider wanted to buy, even at a higher price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. 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 paid CA$6.3m for 305.90k shares. On the other hand they divested 163.42k shares, for CA$3.4m. In the last twelve months there was more buying than selling by First Capital Realty insiders. The average buy price was around CA$20.64. I’d consider this a positive as it suggests insiders see value at around the current price, which is CA$18.63. The chart below shows insider transactions over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
First Capital Realty is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
First Capital Realty Insiders Bought Stock Recently
At First Capital Realty,over the last quarter, we have observed quite a lot more insider buying than insider selling. Dori Segal spent CA$201k on stock. But Executive VP & CFO Kay Brekken sold shares worth CA$125k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Does First Capital Realty Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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 First Capital Realty insiders own 1.0% of the company, worth about CA$49m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About First Capital Realty Insiders?
It is good to see recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest First Capital Realty insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: First Capital Realty 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 editorial-team@simplywallst.com.
