Have Insiders Sold ESR-REIT (SGX:J91U) Shares Recently?

Some ESR-REIT (SGX:J91U) shareholders may be a little concerned to see that insider Jinquan Tong recently sold a whopping S$2.8m worth of stock at a price of S$0.32 per share. However, that sale only accounted for 0.8% of their holding, so arguably it doesn’t say much about their conviction.

Check out our latest analysis for ESR-REIT

ESR-REIT Insider Transactions Over The Last Year

In fact, the recent sale by Jinquan Tong was the biggest sale of ESR-REIT shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of S$0.27. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.

Jinquan Tong sold a total of 29763300 shares over the year at an average price of S$0.28. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

SGX:J91U Recent Insider Trading, March 22nd 2020
SGX:J91U Recent Insider Trading, March 22nd 2020

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does ESR-REIT Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. ESR-REIT insiders own 31% of the company, currently worth about S$292m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At ESR-REIT Tell Us?

An insider sold stock recently, but they haven’t been buying. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. 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. To help with this, we’ve discovered 3 warning signs (1 doesn’t sit too well with us!) that you ought to be aware of before buying any shares in ESR-REIT.

Of course ESR-REIT 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 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.