Anyone interested in Physicians Realty Trust (NYSE:DOC) should probably be aware that the Executive VP, Jeffrey Theiler, recently divested US$492k worth of shares in the company, at an average price of US$18.09 each. That sale was 15% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At Physicians Realty Trust
Notably, that recent sale by Jeffrey Theiler is the biggest insider sale of Physicians Realty Trust 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$17.33. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive).
Happily, we note that in the last year insiders paid US$412k for 24.03k shares. On the other hand they divested 51.23k shares, for US$944k. In total, Physicians Realty Trust insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Physicians Realty Trust better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Physicians Realty Trust Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Physicians Realty Trust insiders own about US$23m worth of shares. That equates to 0.6% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Physicians Realty Trust Insiders?
Insiders sold Physicians Realty Trust shares recently, but they didn’t buy any. Zooming out, the longer term picture doesn’t give us much comfort. On the plus side, Physicians Realty Trust 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 these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Case in point: We’ve spotted 5 warning signs for Physicians Realty Trust you should be aware of, and 1 of them makes us a bit uncomfortable.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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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