This ARMOUR Residential REIT Insider Reduced Their Stake By 85%

From what we can see, insiders were net sellers in ARMOUR Residential REIT, Inc.'s (NYSE:ARR ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

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 ARMOUR Residential REIT

ARMOUR Residential REIT Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Chairman, Daniel Staton, sold US$1.2m worth of shares at a price of US$19.46 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$19.79. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 85% of Daniel Staton's stake. The only individual insider seller over the last year was Daniel Staton.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insiders At ARMOUR Residential REIT Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at ARMOUR Residential REIT. Co-Chief Investment Officer & Head of Risk Management Desmond Macauley purchased US$19k worth of shares in that period. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that ARMOUR Residential REIT insiders own about US$5.2m worth of shares (which is 0.6% of the company). We do generally prefer see higher levels of insider ownership.

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

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. The insider transactions at ARMOUR Residential REIT are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with ARMOUR Residential REIT and understanding these should be part of your investment process.

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.