It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Artis Real Estate Investment Trust (TSE:AX.UN).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. 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. 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.’
The Last 12 Months Of Insider Transactions At Artis Real Estate Investment Trust
In the last twelve months, the biggest single purchase by an insider was when Ronald Joyce bought CA$4.0m worth of shares at a price of CA$9.91 per share. That means that even when the share price was higher, an insider wanted to purchase shares. 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.
In the last twelve months insiders purchased 1.10m shares for CA$13m. But insiders sold 378.00 shares worth CA$5.3k. Overall, Artis Real Estate Investment Trust insiders were net buyers last year. They paid about CA$11.77 on average. This is nice to see since it implies that insiders might see value around current prices (around CA$9.11). You can see the insider transactions 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 alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Artis Real Estate Investment Trust Insiders Bought Stock Recently
At Artis Real Estate Investment Trust,over the last quarter, we have observed quite a lot more insider buying than insider selling. Insiders spent CA$5.7m on shares. But Philip Martens sold shares worth CA$5.3k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Does Artis 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. Artis Real Estate Investment Trust insiders own 12% of the company, currently worth about CA$165m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Artis Real Estate Investment Trust Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Artis Real Estate Investment Trust. One for the watchlist, at least! 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.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 email@example.com.