Even if it's not a huge purchase, we think it was good to see that Melvin Lazar, the Independent Director of Arbor Realty Trust, Inc. (NYSE:ABR) recently shelled out US$69k to buy stock, at US$13.87 per share. That might not be a big purchase but it only increased their holding by 2.4%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Arbor Realty Trust
In the last twelve months, the biggest single purchase by an insider was when Lead Director William Green bought US$257k worth of shares at a price of US$12.83 per share. That means that even when the share price was higher than US$12.66 (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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably William Green was also the biggest seller.
Happily, we note that in the last year insiders paid US$381k for 29.56k shares. On the other hand they divested 17793 shares, for US$228k. In total, Arbor Realty Trust insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 of Arbor Realty Trust
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 Arbor Realty Trust insiders own 4.9% of the company, worth about US$89m. 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 Arbor Realty Trust Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Arbor Realty Trust shares, given these transactions (along with notable insider ownership 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 Arbor 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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