The Independent Non-Executive Chairman of Centuria Property Funds Limited of Centuria Office REIT (ASX:COF), Peter Done, Just Bought 33% More Shares

Even if it's not a huge purchase, we think it was good to see that Peter Done, the Independent Non-Executive Chairman of Centuria Property Funds Limited of Centuria Office REIT (ASX:COF) recently shelled out AU$100k to buy stock, at AU$1.99 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 33%.

See our latest analysis for Centuria Office REIT

Centuria Office REIT Insider Transactions Over The Last Year

Notably, that recent purchase by Peter Done is the biggest insider purchase of Centuria Office REIT shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$1.99). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Peter Done was the only individual insider to buy during the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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.

Insider Ownership of Centuria Office REIT

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Centuria Office REIT insiders have about 0.4% of the stock, worth approximately AU$3.7m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.

So What Do The Centuria Office REIT Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Centuria Office REIT insiders are expecting 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. For instance, we've identified 4 warning signs for Centuria Office REIT (1 is significant) you should be aware of.

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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