Artis Real Estate Investment Trust (TSE:AX.UN) Insiders Have Been Selling

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Artis Real Estate Investment Trust (TSE:AX.UN).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.

Check out our latest analysis for Artis Real Estate Investment Trust

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

The insider, Ronald Joyce, made the biggest insider sale in the last 12 months. That single transaction was for CA$29m worth of shares at a price of CA$11.83 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (CA$7.66). So it may not shed much light on insider confidence at current levels. Ronald Joyce was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid CA$121k for 10.33k shares. But they sold 2492000 shares for CA$29m. The chart below shows insider transactions (by 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!

I will like Artis Real Estate Investment Trust better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Artis Real Estate Investment Trust Boast High Insider Ownership?

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. Artis Real Estate Investment Trust insiders own about CA$119m worth of shares. That equates to 11% of the company. 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 Artis Real Estate Investment Trust Insiders?

It doesn't really mean much that no insider has traded Artis Real Estate Investment Trust shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Artis Real Estate Investment Trust insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Artis Real Estate Investment Trust and understanding these should be part of your investment process.

Of course Artis Real Estate Investment Trust 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, but not derivative transactions.

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.

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