The President of the Council of SmartCentres Real Estate Investment Trust (TSE:SRU.UN), Mitchell Goldhar, Just Bought A Few More Shares

By
Simply Wall St
Published
August 28, 2020
TSX:SRU.UN

SmartCentres Real Estate Investment Trust (TSE:SRU.UN) shareholders (or potential shareholders) will be happy to see that the President of the Council, Mitchell Goldhar, recently bought a whopping CA$2.0m worth of stock, at a price of CA$20.41. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.7%.

View our latest analysis for SmartCentres Real Estate Investment Trust

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

Notably, that recent purchase by President of the Council Mitchell Goldhar was not the only time they bought SmartCentres Real Estate Investment Trust shares this year. They previously made an even bigger purchase of CA$26m worth of shares at a price of CA$32.25 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$20.82). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Mitchell Goldhar was also the biggest seller.

In the last twelve months insiders purchased 1.38m shares for CA$38m. But they sold 800.27k shares for CA$26m. In the last twelve months there was more buying than selling by SmartCentres Real Estate Investment Trust insiders. They paid about CA$27.82 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
TSX:SRU.UN Insider Trading Volume August 28th 2020

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.

Does SmartCentres Real Estate Investment Trust Boast High 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. SmartCentres Real Estate Investment Trust insiders own 8.5% of the company, currently worth about CA$302m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About SmartCentres Real Estate Investment Trust Insiders?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about SmartCentres Real Estate Investment Trust. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SmartCentres Real Estate Investment Trust. At Simply Wall St, we've found that SmartCentres Real Estate Investment Trust has 3 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

But note: SmartCentres Real Estate Investment Trust may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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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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