Even if it’s not a huge purchase, we think it was good to see that Catherine Long, the Executive VP of STORE Capital Corporation (NYSE:STOR) recently shelled out US$100k to buy stock, at US$25.23 per share. Although the purchase is not a big one, increasing their shareholding by only 1.5%, it can be interpreted as a good sign.
STORE Capital Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Joseph Donovan bought US$374k worth of shares at a price of US$37.42 per share. That means that an insider was happy to buy shares at above the current price of US$26.06. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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.
While STORE Capital insiders bought shares during the last year, they didn’t sell. The average buy price was around US$27.80. I’d consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.8% of STORE Capital shares, worth about US$51m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At STORE Capital Tell Us?
It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of STORE Capital we think they are probably pretty confident of a bright future. 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. For instance, we’ve identified 5 warning signs for STORE Capital (1 can’t be ignored) you should be aware of.
But note: STORE Capital 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.
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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. 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.
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