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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 we’ll take a look at whether insiders have been buying or selling shares in True North Commercial Real Estate Investment Trust (TSE:TNT.UN).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. 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’.
True North Commercial Real Estate Investment Trust Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President Daniel Drimmer bought CA$798k worth of shares at a price of CA$6.38 per share. That means that an insider was happy to buy shares at around the current price of CA$6.48. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for True North Commercial Real Estate Investment Trust share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders bought 286k shares for a total of CA$1.8m. In the last twelve months True North Commercial Real Estate Investment Trust insiders were buying shares, but not selling. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does True North Commercial Real Estate Investment Trust Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 8.1% of True North Commercial Real Estate Investment Trust shares, worth about CA$32m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Do The True North Commercial Real Estate Investment Trust Insider Transactions Indicate?
The fact that there have been no True North Commercial Real Estate Investment Trust insider transactions recently certainly doesn’t bother us. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in True North Commercial Real Estate Investment Trust and their transactions don’t cause us concern. Of course, the future is what matters most. So if you are interested in True North Commercial Real Estate Investment Trust, you should check out this free report on analyst forecasts for the company.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.