We wouldn’t blame Innovative Industrial Properties, Inc. (NYSE:IIPR) shareholders if they were a little worried about the fact that Alan Gold, the Executive Chairman recently netted about US$1.9m selling shares at an average price of US$126. However, that sale only accounted for 4.0% of their holding, so arguably it doesn’t say much about their conviction.
The Last 12 Months Of Insider Transactions At Innovative Industrial Properties
Notably, that recent sale by Alan Gold is the biggest insider sale of Innovative Industrial Properties shares that we’ve seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$123. While insider selling is a negative, to us, it is more negative if the shares are sold 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.
In the last twelve months insiders purchased 10.53k shares for US$743k. But insiders sold 27.40k shares worth US$3.4m. In total, Innovative Industrial Properties insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Does Innovative Industrial Properties Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. Innovative Industrial Properties insiders own about US$60m worth of shares. That equates to 2.3% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Innovative Industrial Properties Tell Us?
Insiders haven’t bought Innovative Industrial Properties stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn’t give us much comfort. On the plus side, Innovative Industrial Properties makes money, and is growing profits. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d practice some caution before buying! 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. When we did our research, we found 4 warning signs for Innovative Industrial Properties (1 shouldn’t be ignored!) that we believe deserve your full attention.
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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.
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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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