Read This Before Selling H&R Real Estate Investment Trust (TSE:HR.UN) Shares
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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 before you buy or sell H&R Real Estate Investment Trust (TSE:HR.UN), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
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.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
See our latest analysis for H&R Real Estate Investment Trust
H&R Real Estate Investment Trust Insider Transactions Over The Last Year
Chairman of the Board Ronald Rutman made the biggest insider purchase in the last 12 months. That single transaction was for CA$191k worth of shares at a price of CA$19.12 each. That implies that an insider found the current (approximate) price enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. Nonetheless, we consider it positive if insiders want to buy at around the current share price.
In the last twelve months insiders paid CA$330k for 17.16k shares purchased. In total, H&R Real Estate Investment Trust insiders bought more than they sold over the last year. The average buy price was around CA$19.24. It’s great to see insiders putting their own cash into the company’s stock, albeit at below the recent share price (CA$22.64). The chart below shows insider transactions (by 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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. We usually like to see fairly high levels of insider ownership. Insiders own 0.5% of H&R Real Estate Investment Trust shares, worth about CA$34m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At H&R Real Estate Investment Trust Tell Us?
It doesn’t really mean much that no insider has traded H&R Real Estate Investment Trust shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in H&R Real Estate Investment Trust and we see no evidence to suggest they are worried about the future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for H&R Real Estate Investment Trust.
Of course H&R Real Estate Investment Trust may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
