Insiders At ARMOUR Residential REIT Sold US$512k In Stock, Alluding To Potential Weakness

ARMOUR Residential REIT, Inc. (NYSE:ARR) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At ARMOUR Residential REIT

Over the last year, we can see that the biggest insider sale was by the Independent Director, Stewart Paperin, for US$467k worth of shares, at about US$18.78 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 (US$15.62). So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$246k for 12.50k shares. But insiders sold 27.35k shares worth US$512k. Over the last year we saw more insider selling of ARMOUR Residential REIT shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for ARMOUR Residential REIT

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Does ARMOUR Residential 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. From looking at our data, insiders own US$4.4m worth of ARMOUR Residential REIT stock, about 0.2% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At ARMOUR Residential REIT Tell Us?

The fact that there have been no ARMOUR Residential REIT insider transactions recently certainly doesn't bother us. Our analysis of ARMOUR Residential REIT insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ARMOUR Residential REIT. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of ARMOUR Residential REIT.

Of course ARMOUR Residential 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 of direct interests only, but not derivative transactions or indirect interests.

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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.