We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in National Storage Affiliates Trust (NYSE:NSA).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. 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 equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
The Last 12 Months Of Insider Transactions At National Storage Affiliates Trust
Over the last year, we can see that the biggest insider purchase was by Chairman & CEO Arlen Nordhagen for US$526k worth of shares, at about US$26.30 per share. That implies that an insider found the current (approximate) price enticing. Of course they may have changed their mind. But this suggests they are optimistic. Nonetheless, we consider it positive if insiders want to buy at around the current share price.
Over the last year, we can see that insiders have bought 30.00k shares worth US$794k. On the other hand they divested 10.00k shares, for US$283k. In the last twelve months there was more buying than selling by National Storage Affiliates Trust insiders. The average buy price was around US$26.47. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of US$28.39. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does National Storage Affiliates Trust Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that National Storage Affiliates Trust insiders own 0.6% of the company, worth about US$13m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About National Storage Affiliates Trust Insiders?
It doesn’t really mean much that no insider has traded National Storage Affiliates Trust shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don’t see anything to make us think National Storage Affiliates Trust insiders are doubting the company, and they do own shares. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for National Storage Affiliates Trust.
Of course National Storage Affiliates Trust may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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