Insider Buying: The First Capital Real Estate Investment Trust (TSE:FCR.UN) Independent Trustee Just Bought 20% More Shares

By
Simply Wall St
Published
May 13, 2022
TSX:FCR.UN
Source: Shutterstock

Investors who take an interest in First Capital Real Estate Investment Trust (TSE:FCR.UN) should definitely note that the Independent Trustee, Paul Douglas, recently paid CA$15.11 per share to buy CA$151k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 20%.

See our latest analysis for First Capital Real Estate Investment Trust

First Capital Real Estate Investment Trust Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Trustee Annalisa King for CA$226k worth of shares, at about CA$18.10 per share. That means that even when the share price was higher than CA$14.90 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months First Capital Real Estate Investment Trust insiders were buying shares, but not selling. 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!

insider-trading-volume
TSX:FCR.UN Insider Trading Volume May 13th 2022

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of First Capital Real Estate Investment Trust

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. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that First Capital Real Estate Investment Trust insiders own 0.3% of the company, worth about CA$9.2m. Whilst better than nothing, we're not overly impressed by these holdings.

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

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that First Capital Real Estate Investment Trust insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing First Capital Real Estate Investment Trust. Every company has risks, and we've spotted 5 warning signs for First Capital Real Estate Investment Trust (of which 2 can't be ignored!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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