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Need To Know: Washington Prime Group Inc. (NYSE:WPG) Insiders Have Been Buying Shares

It is not uncommon to see companies perform well in the years after insiders buy shares. 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 Washington Prime Group Inc. (NYSE:WPG).

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, rules govern insider transactions, and certain disclosures are required.

We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. 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.’

See our latest analysis for Washington Prime Group

Washington Prime Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Non-Executive Chairman of the Board Robert Laikin for US$300k worth of shares, at about US$6.12 per share. That means that an insider was happy to buy shares at above the current price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. That purchase may suggest an expectation of positive returns over the long term.

Happily, we note that in the last year insiders bought 173.99k shares for a total of US$1.1m. Overall, Washington Prime Group insiders were net buyers last year. They paid about US$6.06 on average. These transactions suggest that insiders have considered the current price of US$5.83 attractive. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:WPG Recent Insider Trading, February 26th 2019
NYSE:WPG Recent Insider Trading, February 26th 2019

Washington Prime Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders at Washington Prime Group Have Bought Stock Recently

It’s good to see that Washington Prime Group insiders have made notable investments in the company’s shares. Overall, 4 insiders shelled out US$522k for shares in the company — and none sold. This makes one think the business has some good points.

Insider Ownership of Washington Prime Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Washington Prime Group insiders own about US$6.3m worth of shares (which is 0.5% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Washington Prime Group Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Washington Prime Group insiders are expecting a bright future. 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.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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 editorial-team@simplywallst.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.

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