Are Insiders Buying Tritax Big Box REIT plc (LON:BBOX) Stock?

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 shareholders might well want to know whether insiders have been buying or selling shares in Tritax Big Box REIT plc (LON:BBOX).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

Check out our latest analysis for Tritax Big Box REIT

Tritax Big Box REIT Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Partner James Dunlop bought UK£273k worth of shares at a price of UK£0.88 per share. We do like to see buying, but this purchase was made at well below the current price of UK£1.64. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Tritax Big Box REIT insiders may have bought shares in the last year, but they didn't sell any. They paid about UK£1.05 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

Tritax Big Box REIT is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Tritax Big Box REIT 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 0.5% of Tritax Big Box REIT shares, worth about UK£15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Tritax Big Box REIT Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Tritax Big Box REIT shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Tritax Big Box REIT and we see no evidence to suggest they are worried about the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 4 warning signs for Tritax Big Box REIT (of which 2 don't sit too well with us!) you should know about.

Of course Tritax Big Box REIT 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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