Stock Analysis

As Nexus Industrial REIT's (TSE:NXR.UN) market cap increased CA$64m, insiders who bought last year may be reflecting on buying more

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Last week, Nexus Industrial REIT (TSE:NXR.UN) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 7.6% last week, resulting in a CA$64m increase in the company's market worth. As a result, their original purchase of CA$105k worth of stock is now worth CA$134k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Nexus Industrial REIT

The Last 12 Months Of Insider Transactions At Nexus Industrial REIT

There wasn't any very large single transaction over the last year, but we can still observe some trading.

While Nexus Industrial REIT insiders bought shares during the last year, they didn't sell. The average buy price was around CA$10.82. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price of CA$13.86. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

TSX:NXR.UN Insider Trading Volume April 20th 2022

Nexus Industrial REIT 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.

Nexus Industrial REIT Insiders Bought Stock Recently

There was some insider buying at Nexus Industrial REIT over the last quarter. Independent Trustee Floriana Cipollone purchased CA$49k worth of shares in that period. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership

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. We usually like to see fairly high levels of insider ownership. Insiders own 0.8% of Nexus Industrial REIT shares, worth about CA$8.3m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.

So What Do The Nexus Industrial REIT Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Nexus Industrial REIT stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 4 warning signs for Nexus Industrial REIT (3 are a bit unpleasant) you should be aware of.

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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Nexus Industrial REIT

Nexus is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition of industrial properties located in primary and secondary markets in Canada, and the ownership and management of its portfolio of properties.

Very undervalued established dividend payer.