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President Peter Mavoides Just Bought 9.8% More Shares In Essential Properties Realty Trust, Inc. (NYSE:EPRT)

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Investors who take an interest in Essential Properties Realty Trust, Inc. (NYSE:EPRT) should definitely note that the President, Peter Mavoides, recently paid US$20.68 per share to buy US$414k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 9.8%.

See our latest analysis for Essential Properties Realty Trust

The Last 12 Months Of Insider Transactions At Essential Properties Realty Trust

Notably, that recent purchase by Peter Mavoides is the biggest insider purchase of Essential Properties Realty Trust shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$20.62). 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 Essential Properties Realty Trust insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Essential Properties Realty Trust insiders own about US$19m worth of shares. That equates to 0.7% 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 Do The Essential Properties Realty Trust Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Essential Properties Realty Trust insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Essential Properties Realty Trust has 4 warning signs (and 1 which is concerning) we think you should know about.

Of course Essential Properties Realty Trust 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.

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

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.