Insiders made the right call by buying UK£486k Urban Logistics REIT plc (LON:SHED) stock this year, currently sit on UK£70k profit

Insiders who bought Urban Logistics REIT plc (LON:SHED) stock lover the last 12 months are probably not as affected by last week’s 6.3% loss. After taking the recent loss into consideration, the UK£486k worth of stock they bought is now worth UK£556k, indicating that their investment yielded a positive return.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Urban Logistics REIT

Urban Logistics REIT Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Nigel Sutherland Rich bought UK£170k worth of shares at a price of UK£1.70 per share. That means that an insider was happy to buy shares at around the current price of UK£1.87. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Urban Logistics REIT insiders decided to buy shares at close to current prices.

In the last twelve months Urban Logistics REIT insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Does Urban Logistics REIT Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Urban Logistics REIT insiders own 1.0% of the company, worth about UK£8.7m. 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 Urban Logistics REIT Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. 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. When we did our research, we found 3 warning signs for Urban Logistics REIT (1 is potentially serious!) that we believe deserve your full attention.

But note: Urban Logistics REIT 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.