Potential Agree Realty Corporation (NYSE:ADC) shareholders may wish to note that the Independent Director, Jerome Rossi, recently bought US$112k worth of stock, paying US$56.12 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 92%, potentially signalling some real optimism.
The Last 12 Months Of Insider Transactions At Agree Realty
Executive Chairman of the Board Richard Agree made the biggest insider purchase in the last 12 months. That single transaction was for US$1.5m worth of shares at a price of US$68.44 each. That means that an insider was happy to buy shares at above the current price of US$62.84. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 48.37k shares worth US$3.2m. But they sold 1735 shares for US$115k. In the last twelve months there was more buying than selling by Agree Realty insiders. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Agree Realty is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 2.7% of Agree Realty shares, worth about US$74m. 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 Agree Realty Insiders?
It’s certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Agree Realty we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. To assist with this, we’ve discovered 3 warning signs that you should run your eye over to get a better picture of Agree Realty.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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