Insider Buying: The Firm Capital Apartment Real Estate Investment Trust (CVE:FCA.U) Independent Trustee Just Bought 5.9% More Shares

Even if it's not a huge purchase, we think it was good to see that Howard Smuschkowitz, the Independent Trustee of Firm Capital Apartment Real Estate Investment Trust (CVE:FCA.U) recently shelled out CA$67k to buy stock, at CA$6.69 per share. However, it only increased their shares held by 5.9%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Firm Capital Apartment Real Estate Investment Trust

Firm Capital Apartment Real Estate Investment Trust Insider Transactions Over The Last Year

Notably, that recent purchase by Howard Smuschkowitz is the biggest insider purchase of Firm Capital Apartment Real Estate Investment Trust shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of CA$6.45. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Firm Capital Apartment Real Estate Investment Trust insiders may have bought shares in the last year, but they didn't sell any. 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!

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 Firm Capital Apartment Real Estate Investment Trust Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From our data, it seems that Firm Capital Apartment Real Estate Investment Trust insiders own 9.8% of the company, worth about CA$3.9m. We do generally prefer see higher levels of insider ownership.

So What Do The Firm Capital Apartment Real Estate Investment Trust Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Firm Capital Apartment Real Estate Investment Trust stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 4 warning signs with Firm Capital Apartment Real Estate Investment Trust and understanding these should be part of your investment process.

Of course Firm Capital Apartment 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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