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Multiple insiders bought Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) stock earlier this year, a positive sign for shareholders

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·3 min read
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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Wheeler Real Estate Investment Trust, Inc.'s (NASDAQ:WHLR) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Wheeler Real Estate Investment Trust

The Last 12 Months Of Insider Transactions At Wheeler Real Estate Investment Trust

Over the last year, we can see that the biggest insider purchase was by insider Daniel Khoshaba for US$138k worth of shares, at about US$4.21 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.40). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 62.93k shares worth US$240k. On the other hand they divested 48.57k shares, for US$170k. Overall, Wheeler Real Estate Investment Trust insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

Wheeler Real Estate Investment Trust 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.

Does Wheeler Real Estate Investment Trust Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Wheeler Real Estate Investment Trust insiders own about US$3.6m worth of shares. That equates to 15% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Wheeler Real Estate Investment Trust Tell Us?

The fact that there have been no Wheeler Real Estate Investment Trust insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in Wheeler Real Estate Investment Trust and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Wheeler Real Estate Investment Trust has 2 warning signs we think you should be aware of.

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.

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.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.