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Those following along with Agree Realty Corporation (NYSE:ADC) will no doubt be intrigued by the recent purchase of shares by Joel Agree, President of the company, who spent a stonking US$1.0m on stock at an average price of US$65.69. While that only increased their holding size by 4.1%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Agree Realty
The Executive Chairman of the Board Richard Agree made the biggest insider purchase in the last 12 months. That single transaction was for US$1.5m worth of shares at a price of US$68.44 each. That means that even when the share price was higher than US$62.67 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. 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 insiders purchased 47.42k shares for US$3.1m. But insiders sold 2.00k shares worth US$135k. In the last twelve months there was more buying than selling by Agree Realty insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Agree Realty 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.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Agree Realty insiders own about US$68m worth of shares. That equates to 1.9% of the company. 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 Does This Data Suggest About Agree Realty Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Insiders likely see value in Agree Realty shares, given these transactions (along with notable insider ownership of the company). 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. To that end, you should learn about the 3 warning signs we've spotted with Agree Realty (including 1 which is a bit concerning).
Of course Agree Realty may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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. 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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