Insider Buying: The 360 Capital REIT (ASX:TOT) Non-Executive Director Just Bought 23% More Shares

By
Simply Wall St
Published
November 29, 2020
ASX:TOT

Whilst it may not be a huge deal, we thought it was good to see that the 360 Capital REIT (ASX:TOT) Non-Executive Director, Andrew Moffat, recently bought AU$88k worth of stock, for AU$0.88 per share. That purchase might not be huge but it did increase their holding by 23%.

View our latest analysis for 360 Capital REIT

360 Capital REIT Insider Transactions Over The Last Year

The MD & Executive Director Tony Pitt made the biggest insider purchase in the last 12 months. That single transaction was for AU$111k worth of shares at a price of AU$1.11 each. That means that an insider was happy to buy shares at above the current price of AU$0.88. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months 360 Capital REIT insiders were buying shares, but not selling. The average buy price was around AU$0.99. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
ASX:TOT Insider Trading Volume November 29th 2020

360 Capital 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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own AU$3.1m worth of 360 Capital REIT stock, about 2.6% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

So What Does This Data Suggest About 360 Capital REIT Insiders?

The recent insider purchase is heartening. 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 360 Capital REIT insiders are expecting a bright future. 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. At Simply Wall St, we've found that 360 Capital REIT has 4 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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This article by Simply Wall St is general in nature. 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.
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