This Insider Has Just Sold Shares In Canadian Apartment Properties Real Estate Investment Trust (TSE:CAR.UN)

Anyone interested in Canadian Apartment Properties Real Estate Investment Trust (TSE:CAR.UN) should probably be aware that the CEO, President & Director, Mark Kenney, recently divested CA$350k worth of shares in the company, at an average price of CA$48.06 each. On the bright side, that sale was only 2.8% of their holding, so we doubt it’s very meaningful, on its own.

Check out our latest analysis for Canadian Apartment Properties Real Estate Investment Trust

Canadian Apartment Properties Real Estate Investment Trust Insider Transactions Over The Last Year

The Independent Chairman of the Board, Michael Stein, made the biggest insider sale in the last 12 months. That single transaction was for CA$4.2m worth of shares at a price of CA$41.67 each. That means that an insider was selling shares at slightly below the current price (CA$47.25). 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. We note that the biggest single sale was only 20% of Michael Stein’s holding.

Canadian Apartment Properties Real Estate Investment Trust 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. By clicking on the graph below, you can see the precise details of each insider transaction!

TSX:CAR.UN Recent Insider Trading May 29th 2020
TSX:CAR.UN Recent Insider Trading May 29th 2020

I will like Canadian Apartment Properties Real Estate Investment 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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 0.4% of Canadian Apartment Properties Real Estate Investment Trust shares, worth about CA$34m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Canadian Apartment Properties Real Estate Investment Trust Tell Us?

Insiders haven’t bought Canadian Apartment Properties Real Estate Investment Trust stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn’t show any insider buying. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. So we’d only buy after careful consideration. 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 Canadian Apartment Properties Real Estate Investment Trust you should be aware of, and 2 of these are concerning.

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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