It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Artis Real Estate Investment Trust (TSE:AX.UN).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, including certain disclosures.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. 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.’
The Last 12 Months Of Insider Transactions At Artis Real Estate Investment Trust
In the last twelve months, the biggest single purchase by an insider was when Ronald Joyce bought CA$4.0m worth of shares at a price of CA$9.91 per share. That means that an insider was happy to buy shares at above the current price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. That purchase may suggest an expectation of positive returns over the long term.
In the last twelve months insiders purchased 1.25m shares for CA$15m. On the other hand they divested 378.00 shares, for CA$5.3k. In the last twelve months there was more buying than selling by Artis Real Estate Investment Trust insiders. The average buy price was around CA$12.26. This is nice to see since it implies that insiders might see value around current prices (around CA$9.66). The chart below shows insider transactions over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Artis Real Estate Investment Trust Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at Artis Real Estate Investment Trust, over the last three months. Insiders spent CA$5.2m on shares. But Philip Martens sold shares worth CA$5.3k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Artis Real Estate Investment Trust insiders own about CA$134m worth of shares (which is 12% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Artis Real Estate Investment Trust Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Artis Real Estate Investment Trust insiders are reasonably well aligned, and optimistic for the future. Of course, the future is what matters most. So if you are interested in Artis Real Estate Investment Trust, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.