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 shareholders might well want to know whether insiders have been buying or selling shares in Canadian Apartment Properties Real Estate Investment Trust (TSE:CAR.UN).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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'.
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Canadian Apartment Properties Real Estate Investment Trust Insider Transactions Over The Last Year
The Chief Financial Officer, Scott Cryer, made the biggest insider sale in the last 12 months. That single transaction was for CA$483k worth of shares at a price of CA$50.30 each. So what is clear is that an insider saw fit to sell at around the current price of CA$49.11. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In total, Canadian Apartment Properties Real Estate Investment Trust insiders sold more than they bought over the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Insiders at Canadian Apartment Properties Real Estate Investment Trust Have Sold Stock Recently
Over the last three months, we've seen notably more insider selling, than insider buying, at Canadian Apartment Properties Real Estate Investment Trust. In that time, insiders dumped CA$642k worth of shares. On the flip side, Gina Cody spent CA$74k on purchasing shares. Generally this level of net selling might be considered a bit bearish.
Does Canadian Apartment Properties Real Estate Investment Trust Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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 appears that Canadian Apartment Properties Real Estate Investment Trust insiders own 0.6% of the company, worth about CA$47m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Canadian Apartment Properties Real Estate Investment Trust Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Canadian Apartment Properties Real Estate Investment Trust, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since Canadian Apartment Properties Real Estate Investment Trust is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd think twice before buying! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Canadian Apartment Properties Real Estate Investment Trust.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 email@example.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.