Are Insiders Buying Granite Real Estate Investment Trust (TSE:GRT.UN) Stock?

By
Simply Wall St
Published
February 15, 2021
TSX:GRT.UN
Source: Shutterstock

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Granite Real Estate Investment Trust (TSE:GRT.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, such insiders must disclose their trading activities, and not trade on inside information.

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 Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for Granite Real Estate Investment Trust

Granite Real Estate Investment Trust Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when President Kevan Gorrie bought CA$416k worth of shares at a price of CA$55.00 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$76.12), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Granite Real Estate Investment Trust insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
TSX:GRT.UN Insider Trading Volume February 16th 2021

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.

Have Granite Real Estate Investment Trust Insiders Traded Recently?

There was some insider buying at Granite Real Estate Investment Trust over the last quarter. President Kevan Gorrie bought CA$12k worth of shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

Insider Ownership of Granite Real Estate Investment Trust

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.2% of Granite Real Estate Investment Trust shares, worth about CA$8.7m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

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

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Granite Real Estate Investment Trust stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Granite Real Estate Investment Trust. Every company has risks, and we've spotted 5 warning signs for Granite Real Estate Investment Trust (of which 2 make us uncomfortable!) 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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