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

By
Simply Wall St
Published
September 17, 2020
TSX:AX.UN

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 shareholders might well want to know whether insiders have been buying or selling shares in Artis Real Estate Investment Trust (TSE:AX.UN).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

See 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$9.04). So it is hard to draw any strong conclusion from it. Ronald Joyce was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 124.79k shares for CA$966k. But insiders sold 2.49m shares worth CA$29m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
TSX:AX.UN Insider Trading Volume September 17th 2020

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Artis Real Estate Investment Trust Insiders Bought Stock Recently

Over the last quarter, Artis Real Estate Investment Trust insiders have spent a meaningful amount on shares. Overall, four insiders shelled out CA$261k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Artis Real Estate Investment Trust insiders own 12% of the company, worth about CA$142m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Artis Real Estate Investment Trust Insider Transactions Indicate?

The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Artis Real Estate Investment Trust (of which 1 is potentially serious!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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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. 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.
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