Trade Alert: Timothy Melton At Melcor Real Estate Investment Trust (TSE:MR.UN), Has Just Spent CA$78k Buying 36% More Shares

Even if it’s not a huge purchase, we think it was good to see that Timothy Melton, a Melcor Real Estate Investment Trust (TSE:MR.UN) insider, recently shelled out CA$78k to buy stock, at CA$3.90 per share. That purchase might not be huge but it did increase their holding by 36%.

Check out our latest analysis for Melcor Real Estate Investment Trust

The Last 12 Months Of Insider Transactions At Melcor Real Estate Investment Trust

In fact, the recent purchase by Timothy Melton was the biggest purchase of Melcor Real Estate Investment Trust shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of CA$3.97. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. The good news for Melcor Real Estate Investment Trust share holders is that insiders were buying at near the current price.

While Melcor 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:MR.UN Insider Trading Volume September 16th 2020

Melcor 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.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Melcor Real Estate Investment Trust insiders have about 1.9% of the stock, worth approximately CA$2.2m. I generally like to see higher levels of ownership.

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

It’s certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Melcor Real Estate Investment Trust insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Case in point: We’ve spotted 5 warning signs for Melcor Real Estate Investment Trust you should be aware of, and 1 of them makes us a bit uncomfortable.

Of course Melcor 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.

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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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