Insider Buyers Lose AU$78k As RAM Essential Services Property Fund Sheds AU$30m

The recent price decline of 10.0% in RAM Essential Services Property Fund's (ASX:REP) stock may have disappointed insiders who bought AU$546.0k worth of shares at an average price of AU$0.63 in the past 12 months. 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$468.3k, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At RAM Essential Services Property Fund

In the last twelve months, the biggest single purchase by an insider was when Group CEO & Executive Director Scott Wehl bought AU$546k worth of shares at a price of AU$0.64 per share. That means that an insider was happy to buy shares at above the current price of AU$0.54. 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Scott Wehl. We note that Scott Wehl was both the biggest buyer and the biggest seller.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for RAM Essential Services Property Fund

RAM Essential Services Property Fund is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At RAM Essential Services Property Fund Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at RAM Essential Services Property Fund. In total, Group CEO & Executive Director Scott Wehl dumped AU$287k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does RAM Essential Services Property Fund Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. From our data, it seems that RAM Essential Services Property Fund insiders own 3.8% of the company, worth about AU$10m. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At RAM Essential Services Property Fund Tell Us?

An insider hasn't bought RAM Essential Services Property Fund stock in the last three months, but there was some selling. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So we're happy enough to look past some selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - RAM Essential Services Property Fund has 1 warning sign we think you should be aware of.

Of course RAM Essential Services Property Fund 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 currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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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.