It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Crombie Real Estate Investment Trust (TSE:CRR.UN), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
The Last 12 Months Of Insider Transactions At Crombie Real Estate Investment Trust
In the last twelve months, the biggest single purchase by an insider was when Independent Trustee Jason Shannon bought CA$306k worth of shares at a price of CA$15.43 per share. That means that an insider was happy to buy shares at above the current price of CA$9.58. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. 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.
Crombie Real Estate Investment Trust insiders may have bought shares in the last year, but they didn’t sell any. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Crombie Real Estate Investment Trust Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Crombie Real Estate Investment Trust. Overall, six insiders shelled out CA$683k for shares in the company — and none sold. This makes one think the business has some good points.
Insider Ownership of Crombie Real Estate Investment Trust
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data suggests Crombie Real Estate Investment Trust insiders own 0.4% of the company, worth about CA$6.6m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Crombie Real Estate Investment Trust Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Crombie Real Estate Investment Trust insiders are expecting a bright future. While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You’d be interested to know, that we found 2 warning signs for Crombie Real Estate Investment Trust and we suggest you have a look.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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