We wouldn’t blame Digital Realty Trust, Inc. (NYSE:DLR) shareholders if they were a little worried about the fact that Laurence Chapman, the Independent Chairman of the Board recently netted about US$1.0m selling shares at an average price of US$130. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we’ve seen.
The Last 12 Months Of Insider Transactions At Digital Realty Trust
Notably, that recent sale by Laurence Chapman is the biggest insider sale of Digital Realty Trust shares that we’ve seen in the last year. That means that an insider was selling shares at slightly below the current price (US$138). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. We note that the biggest single sale was only 14%of Laurence Chapman’s holding.
You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Digital Realty Trust Boast High 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. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that Digital Realty Trust insiders own 0.05% of the company, worth about US$15m. 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 Digital Realty Trust Insiders?
An insider sold stock recently, but they haven’t been buying. And there weren’t any purchases to give us comfort, over the last year. But it is good to see that Digital Realty Trust is growing earnings. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’re in no rush to buy! While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we’ve spotted 1 warning sign for Digital Realty Trust you should know about.
But note: Digital Realty Trust may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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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