Have Getty Realty Corp. (NYSE:GTY) Insiders Been Selling Their Stock?

Some Getty Realty Corp. (NYSE:GTY) shareholders may be a little concerned to see that the Co-Founder & Non-Executive Chairman, Leo Liebowitz, recently sold a whopping US$1.9m worth of stock at a price of US$29.22 per share. However, it’s crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.4%.

Check out our latest analysis for Getty Realty

Getty Realty Insider Transactions Over The Last Year

In fact, the recent sale by Leo Liebowitz was the biggest sale of Getty Realty shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$29.77, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it’s only a weak signal. This single sale was just 2.4% of Leo Liebowitz’s stake.

Leo Liebowitz ditched 72857 shares over the year. The average price per share was US$29.50. You can see a visual depiction of insider transactions (by 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!

NYSE:GTY Recent Insider Trading, March 8th 2020
NYSE:GTY Recent Insider Trading, March 8th 2020

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Insider Ownership of Getty Realty

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Getty Realty insiders own 11% of the company, currently worth about US$131m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Getty Realty Insiders?

An insider sold Getty Realty shares recently, but they didn’t buy any. Looking to the last twelve months, our data doesn’t show any insider buying. But it is good to see that Getty Realty is growing earnings. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Getty Realty has 2 warning signs and it would be unwise to ignore them.

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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 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.

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