Positive Signs As Multiple Insiders Buy Schroder Real Estate Investment Trust Stock \
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Schroder Real Estate Investment Trust Limited (LON:SREI), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Schroder Real Estate Investment Trust
The Last 12 Months Of Insider Transactions At Schroder Real Estate Investment Trust
Over the last year, we can see that the biggest insider purchase was by Independent Chairman Alastair Hughes for UK£50k worth of shares, at about UK£0.57 per share. That means that an insider was happy to buy shares at above the current price of UK£0.46. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Schroder Real Estate Investment Trust insiders were buying shares, but not selling. You can see the insider transactions (by companies and 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!
Schroder Real Estate Investment Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Schroder Real Estate Investment Trust Have Bought Stock Recently
We saw some Schroder Real Estate Investment Trust insider buying shares in the last three months. Independent Non-Executive Director Stephen Bligh bought UK£29k worth of shares in that time. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Insider Ownership Of Schroder Real Estate Investment Trust
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From what we can see in our data, insiders own only about UK£225k worth of Schroder Real Estate Investment Trust shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
So What Do The Schroder Real Estate Investment Trust Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Schroder Real Estate Investment Trust insiders bought more shares in the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Schroder Real Estate Investment Trust you should be aware of, and 2 of them shouldn't be ignored.
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.
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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.
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