We often see insiders buying up shares in companies that perform well over the long term. 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 Brandywine Realty Trust (NYSE:BDN).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. 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.’
Brandywine Realty Trust Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Executive VP and Senior MD of Austin & Metro DC William Redd sold US$494k worth of shares at a price of US$16.45 per share. So what is clear is that an insider saw fit to sell at around the current price of US$15.63. They could have a variety of motivations for selling, but it’s still not particularly encouraging to see. Arguably, insider selling at around current prices should give us reason to reflect on whether the stock is fully valued at the moment.
We note that in the last year insiders divested 43.23k shares for a total of US$711k. Over the last year we saw more insider selling of Brandywine Realty Trust shares, than buying. The sellers received a price of around US$16.44, on average. It’s not particularly great to see insiders were selling shares around current prices. Since insiders sell for many reasons, we wouldn’t put too much weight on it. 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!
I will like Brandywine Realty Trust better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Brandywine Realty Trust insiders own 1.3% of the company, worth about US$36m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Brandywine Realty Trust Insiders?
The fact that there have been no Brandywine Realty Trust insider transactions recently certainly doesn’t bother us. Still, the insider transactions at Brandywine Realty Trust in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Brandywine Realty 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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