Stock Analysis

Are Insiders Buying Urban Logistics REIT plc (LON:SHED) Stock?

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LSE:SHED
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Urban Logistics REIT plc (LON:SHED).

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. 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'.

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Urban Logistics REIT Insider Transactions Over The Last Year

The Independent Non-Executive Chairman Nigel Sutherland Rich made the biggest insider purchase in the last 12 months. That single transaction was for UK£151k worth of shares at a price of UK£1.38 each. That means that an insider was happy to buy shares at around the current price of UK£1.44. 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 Urban Logistics REIT share holders is that insiders were buying at near the current price.

Urban Logistics REIT insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
AIM:SHED Insider Trading Volume March 9th 2021

Urban Logistics 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.

Does Urban Logistics REIT Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Urban Logistics REIT insiders own 0.7% of the company, worth about UK£2.5m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Urban Logistics REIT Insiders?

It doesn't really mean much that no insider has traded Urban Logistics REIT shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Urban Logistics REIT insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Urban Logistics REIT. At Simply Wall St, we've found that Urban Logistics REIT has 5 warning signs (2 are a bit unpleasant!) that deserve your attention before going any further with your analysis.

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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