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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Canadian Apartment Properties Real Estate Investment Trust (TSE:CAR.UN), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. 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 Canadian Apartment Properties Real Estate Investment Trust
Over the last year, we can see that the biggest insider sale was by the Chief Financial Officer, Scott Cryer, for CA$483k worth of shares, at about CA$50.30 per share. So we know that an insider sold shares at around the present share price of CA$48.89. While we don’t usually like to see insider selling, it’s more concerning if the sales take price 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).
All up, insiders sold more shares in Canadian Apartment Properties Real Estate Investment Trust than they bought, over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Canadian Apartment Properties Real Estate Investment Trust Insiders Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at Canadian Apartment Properties Real Estate Investment Trust. In that period Gina Cody spent CA$74k on shares. But Executive Vice President of Operations Patricia MacPherson sold CA$32k worth. It is nice to see that insiders have bought, but the quantum isn’t large enough to get us excited.
Does Canadian Apartment Properties Real Estate Investment Trust Boast High 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. We usually like to see fairly high levels of insider ownership. It appears that Canadian Apartment Properties Real Estate Investment Trust insiders own 0.5% of the company, worth about CA$42m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Canadian Apartment Properties Real Estate Investment Trust Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. We’re a little cautious about the insider selling at Canadian Apartment Properties Real Estate Investment Trust. But it’s good to see that insiders own shares in the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Canadian Apartment Properties Real Estate Investment Trust.
Of course Canadian Apartment Properties Real Estate Investment Trust 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 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.
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. Thank you for reading.