Insiders who bought stock earlier this year lose -AU$9.0k as Charter Hall Retail REIT (ASX:CQR) drops to AU$2.2b

The recent price decline of 3.5% in Charter Hall Retail REIT's (ASX:CQR) stock may have disappointed insiders who bought AU$221k worth of shares at an average price of AU$3.99 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$212k which is not ideal.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Charter Hall Retail REIT

The Last 12 Months Of Insider Transactions At Charter Hall Retail REIT

Over the last year, we can see that the biggest insider purchase was by Independent Chairman of Charter Hall Retail Management Limited Roger Davis for AU$180k worth of shares, at about AU$3.98 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$3.83). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

While Charter Hall Retail REIT insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and 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!

Charter Hall Retail REIT is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Charter Hall Retail REIT Insiders Bought Stock Recently

It's good to see that Charter Hall Retail REIT insiders have made notable investments in the company's shares. Specifically, Independent Chairman of Charter Hall Retail Management Limited Roger Davis bought AU$180k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Charter Hall Retail REIT insiders own 0.2% of the company, worth about AU$4.2m. We consider this fairly low insider ownership.

So What Does This Data Suggest About Charter Hall Retail REIT Insiders?

It is good 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 Charter Hall Retail 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. Be aware that Charter Hall Retail REIT is showing 4 warning signs in our investment analysis, and 2 of those are a bit unpleasant...

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.