Have Allied Properties Real Estate Investment Trust (TSE:AP.UN) Insiders Been Selling Their Stock?

We’d be surprised if Allied Properties Real Estate Investment Trust (TSE:AP.UN) shareholders haven’t noticed that the Chairman of the Board, Gordon Cunningham, recently sold CA$253k worth of stock at CA$50.53 per share. That sale was 12.6% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Allied Properties Real Estate Investment Trust

The Last 12 Months Of Insider Transactions At Allied Properties Real Estate Investment Trust

Notably, that recent sale by Gordon Cunningham is the biggest insider sale of Allied Properties Real Estate Investment Trust shares that we’ve seen in the last year. So it’s clear an insider wanted to take some cash off the table, even slightly below the current price of CA$51.24. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it’s only a weak signal. It is worth noting that this sale was only 12.6% of Gordon Cunningham’s holding.

In total, Allied Properties Real Estate Investment Trust insiders sold more than they bought over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

TSX:AP.UN Recent Insider Trading, August 16th 2019
TSX:AP.UN Recent Insider Trading, August 16th 2019

Insider Ownership of Allied Properties Real Estate Investment Trust

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 Allied Properties Real Estate Investment Trust insiders own 1.4% of the company, worth about CA$81m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Allied Properties Real Estate Investment Trust Insiders?

An insider hasn’t bought Allied Properties Real Estate Investment Trust stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn’t bring confidence, either. But since Allied Properties Real Estate Investment Trust is profitable and growing, we’re not too worried by this. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’d think twice before buying! Of course, the future is what matters most. So if you are interested in Allied Properties Real Estate Investment Trust, you should check out this free report on analyst forecasts for the company.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.