Independent Trustee of SIR Royalty Income Fund Picks Up 1.3% More Stock

Investors who take an interest in SIR Royalty Income Fund (TSE:SRV.UN) should definitely note that the Independent Trustee, Lembit Janes, recently paid CA$11.59 per share to buy CA$156k worth of the stock. Although the purchase only increased their holding by 1.3%, it is still a solid purchase in our view.

See our latest analysis for SIR Royalty Income Fund

SIR Royalty Income Fund Insider Transactions Over The Last Year

Notably, that recent purchase by Lembit Janes is the biggest insider purchase of SIR Royalty Income Fund shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of CA$12.80. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the SIR Royalty Income Fund insiders decided to buy shares at close to current prices.

In the last twelve months SIR Royalty Income Fund insiders were buying shares, but not selling. 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!

SIR Royalty Income 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.

Insider Ownership Of SIR Royalty Income Fund

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that SIR Royalty Income Fund insiders own about CA$14m worth of shares (which is 11% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The SIR Royalty Income Fund Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest SIR Royalty Income Fund insiders are well aligned, and that they may think the share price is too low. 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. Every company has risks, and we've spotted 2 warning signs for SIR Royalty Income Fund you should know about.

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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com