Growthpoint Properties Australia (ASX:GOZ) drops to AU$2.5b and insiders who purchased earlier this year lose another AU$1.0k

The recent 6.1% drop in Growthpoint Properties Australia's (ASX:GOZ) stock could come as a blow to insiders who purchased AU$243k worth of stock at an average buy price of AU$3.23 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only AU$242k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Growthpoint Properties Australia

Growthpoint Properties Australia Insider Transactions Over The Last Year

The Independent Non-Executive Director Josephine Sukkar made the biggest insider purchase in the last 12 months. That single transaction was for AU$110k worth of shares at a price of AU$3.05 each. So it's clear an insider wanted to buy, at around the current price, which is AU$3.22. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Growthpoint Properties Australia share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 75.00k shares worth AU$243k. But insiders sold 25.00k shares worth AU$109k. In the last twelve months there was more buying than selling by Growthpoint Properties Australia insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Growthpoint Properties Australia is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Growthpoint Properties Australia Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Growthpoint Properties Australia insiders own 0.8% of the company, worth about AU$19m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Growthpoint Properties Australia Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Growthpoint Properties Australia and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Growthpoint Properties Australia. When we did our research, we found 2 warning signs for Growthpoint Properties Australia (1 can't be ignored!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.