Have National Retail Properties, Inc. (NYSE:NNN) Insiders Been Selling Their Stock?

Some National Retail Properties, Inc. (NYSE:NNN) shareholders may be a little concerned to see that the Executive VP & Chief Acquisitions Officer, Stephen Horn, recently sold a whopping US$1.0m worth of stock at a price of US$56.27 per share. That’s a big dump, and it decreased their holding size by 12%, which is notable but not too bad.

See our latest analysis for National Retail Properties

The Last 12 Months Of Insider Transactions At National Retail Properties

In the last twelve months, the biggest single sale by an insider was when the Executive VP & Chief Investment Officer, Paul Bayer, sold US$2.0m worth of shares at a price of US$52.44 per share. That means that an insider was selling shares at slightly below the current price (US$57.25). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. It is worth noting that this sale was only 28% of Paul Bayer’s holding.

National Retail Properties insiders didn’t buy any shares over the last year. You can see the insider transactions (by 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!

NYSE:NNN Recent Insider Trading, February 19th 2020
NYSE:NNN Recent Insider Trading, February 19th 2020

I will like National Retail Properties better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

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. Insiders own 0.8% of National Retail Properties shares, worth about US$76m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At National Retail Properties Tell Us?

Insiders sold stock recently, but they haven’t been buying. And even if we look to the last year, we didn’t see any purchases. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d think twice before buying! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course National Retail Properties 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.