Stock Analysis

As Artis Real Estate Investment Trust (TSE:AX.UN) drops to CA$1.1b market cap, insiders might rethink their CA$6.0m stock purchase earlier this year

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The recent price decline of 9.7% in Artis Real Estate Investment Trust's (TSE:AX.UN) stock may have disappointed insiders who bought CA$6.0m worth of shares at an average price of CA$12.42 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth CA$4.5m, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Before we look at these insider transactions though, you might like to know that our analysis indicates that AX.UN is potentially undervalued!

Artis Real Estate Investment Trust Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President Samir Manji for CA$1.1m worth of shares, at about CA$12.42 per share. That means that even when the share price was higher than CA$9.35 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Artis Real Estate Investment Trust insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

TSX:AX.UN Insider Trading Volume September 28th 2022

Artis Real Estate Investment Trust 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.

Insiders At Artis Real Estate Investment Trust Have Bought Stock Recently

Over the last quarter, Artis Real Estate Investment Trust insiders have spent a meaningful amount on shares. In total, insiders bought CA$319k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Artis 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.5% of Artis Real Estate Investment Trust shares, worth about CA$27m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Artis Real Estate Investment Trust Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Artis Real Estate Investment Trust shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Artis Real Estate Investment Trust. Every company has risks, and we've spotted 1 warning sign for Artis Real Estate Investment Trust you should know about.

But note: Artis Real Estate Investment Trust may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

Valuation is complex, but we're helping make it simple.

Find out whether Artis Real Estate Investment Trust is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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Artis Real Estate Investment Trust

Artis is a diversified Canadian real estate investment trust investing in industrial and office properties in Canada and the United States.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Future Growth0
Past Performance1
Financial Health2

Read more about these checks in the individual report sections or in our analysis model.

Established dividend payer and slightly overvalued.