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, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. 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'.
Check out our latest analysis for Granite Real Estate Investment Trust
Granite Real Estate Investment Trust Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President Kevan Gorrie for CA$416k worth of shares, at about CA$55.00 per share. We do like to see buying, but this purchase was made at well below the current price of CA$73.22. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Granite Real Estate Investment Trust insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Granite Real Estate Investment Trust is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Granite Real Estate Investment Trust Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Granite Real Estate Investment Trust insiders own 0.2% of the company, worth about CA$7.4m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Granite Real Estate Investment Trust Insiders?
It doesn't really mean much that no insider has traded Granite Real Estate Investment Trust shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Granite Real Estate Investment Trust insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Granite Real Estate Investment Trust. Case in point: We've spotted 3 warning signs for Granite Real Estate Investment Trust you should be aware of.
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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