Selling NZ$20m worth of Goodman Property Trust (NZSE:GMT) stock at high prices would have gotten insiders a handsome reward

By
Simply Wall St
Published
August 27, 2021
NZSE:GMT
Source: Shutterstock

Even though Goodman Property Trust (NZSE:GMT) stock gained 3.5% last week, insiders who sold NZ$20m worth of stock over the past year are probably better off. Selling at an average price of NZ$20.17, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Goodman Property Trust

The Last 12 Months Of Insider Transactions At Goodman Property Trust

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Director, Gregory Goodman, sold NZ$20m worth of shares at a price of NZ$20.17 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (NZ$2.65). So it is hard to draw any strong conclusion from it. Gregory Goodman was the only individual insider to sell shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NZSE:GMT Insider Trading Volume August 27th 2021

I will like Goodman Property Trust better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Goodman Property Trust Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Goodman Property Trust insiders own 0.2% of the company, worth about NZ$7.7m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Goodman Property Trust Insider Transactions Indicate?

The fact that there have been no Goodman Property Trust insider transactions recently certainly doesn't bother us. Our analysis of Goodman Property Trust insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. 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. For example, Goodman Property Trust has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.

But note: Goodman Property Trust 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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