Some Canadian Apartment Properties Real Estate Investment Trust (TSE:CAR.UN) shareholders may be a little concerned to see that the Independent Chairman of the Board, Michael Stein, recently sold a whopping CA$4.2m worth of stock at a price of CA$41.67 per share. That’s a big dump, and it decreased their holding size by 20%, which is notable but not too bad.
Canadian Apartment Properties Real Estate Investment Trust Insider Transactions Over The Last Year
In fact, the recent sale by Michael Stein was the biggest sale of Canadian Apartment Properties Real Estate Investment Trust shares made by an insider individual in the last twelve months, according to our records. So it’s clear an insider wanted to take some cash off the table, even slightly below the current price of CA$42.25. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. This single sale was just 20% of Michael Stein’s stake.
Over the last year we saw more insider selling of Canadian Apartment Properties Real Estate Investment Trust shares, than buying. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Canadian Apartment Properties 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.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Canadian Apartment Properties Real Estate Investment Trust insiders own about CA$37m worth of shares. That equates to 0.5% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Canadian Apartment Properties Real Estate Investment Trust Insiders?
An insider hasn’t bought Canadian Apartment Properties Real Estate Investment Trust stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d think twice before buying! So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. At Simply Wall St, we’ve found that Canadian Apartment Properties Real Estate Investment Trust has 4 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.
Of course Canadian Apartment Properties 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 firstname.lastname@example.org. 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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