Charter Hall Social Infrastructure REIT (ASX:CQE) drops to AU$1.3b and insiders who purchased earlier this year lose another AU$4.6k

By
Simply Wall St
Published
May 09, 2022
ASX:CQE
Source: Shutterstock

Insiders who acquired AU$282k worth of Charter Hall Social Infrastructure REIT's (ASX:CQE) stock at an average price of AU$3.69 in the past 12 months may be dismayed by the recent 5.7% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$277k, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Charter Hall Social Infrastructure REIT

The Last 12 Months Of Insider Transactions At Charter Hall Social Infrastructure REIT

In the last twelve months, the biggest single purchase by an insider was when Chief Investment Officer & Executive Director of Charter Hall Social Infrastructure Limited Sean Thomas McMahon bought AU$215k worth of shares at a price of AU$3.66 per share. That means that an insider was happy to buy shares at above the current price of AU$3.63. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Charter Hall Social Infrastructure REIT insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
ASX:CQE Insider Trading Volume May 9th 2022

Charter Hall Social Infrastructure REIT is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders at Charter Hall Social Infrastructure REIT Have Bought Stock Recently

We saw some Charter Hall Social Infrastructure REIT insider buying shares in the last three months. Insiders bought AU$51k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership of Charter Hall Social Infrastructure REIT

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Charter Hall Social Infrastructure REIT insiders own about AU$13m worth of shares (which is 1.0% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Charter Hall Social Infrastructure REIT Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Charter Hall Social Infrastructure REIT insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Charter Hall Social Infrastructure REIT. At Simply Wall St, we've found that Charter Hall Social Infrastructure REIT has 3 warning signs (2 make us uncomfortable!) that deserve your attention before going any further with your analysis.

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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