We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Killam Apartment Real Estate Investment Trust (TSE:KMP.UN).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
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The Last 12 Months Of Insider Transactions At Killam Apartment Real Estate Investment Trust
Over the last year, we can see that the biggest insider sale was by the Non-Independent Trustee, Timothy Banks, for CA$478k worth of shares, at about CA$15.07 per share. That means that an insider was selling shares at slightly below the current price (CA$18.85). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it’s only a weak signal. We note that the biggest single sale was only 13.4% of Timothy Banks’s holding. Notably Timothy Banks was also the biggest buyer, having purchased CA$394k worth of shares.
Over the last year we saw more insider selling of Killam Apartment Real Estate Investment Trust shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Killam Apartment 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.
Insiders at Killam Apartment Real Estate Investment Trust Have Sold Stock Recently
We have seen a bit of insider selling at Killam Apartment Real Estate Investment Trust, over the last three months. Vice President of Commercial Leasing & MHC Management Pamela Crowell sold just CA$48k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn’t bother us.
Insider Ownership of Killam Apartment Real Estate Investment Trust
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Killam Apartment Real Estate Investment Trust insiders own about CA$32m worth of shares. That equates to 1.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Killam Apartment Real Estate Investment Trust Insiders?
Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we’re not concerned. We’re a little cautious about the insider selling at Killam Apartment Real Estate Investment Trust. The modest level of insider ownership is, at least, some comfort. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Killam Apartment Real Estate Investment Trust.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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. Thank you for reading.