This Insider Has Just Sold Shares In Real Brokerage

Anyone interested in The Real Brokerage Inc. (NASDAQ:REAX) should probably be aware that the Lead Independent Director, Larry Klane, recently divested US$257k worth of shares in the company, at an average price of US$3.97 each. However, the silver lining is that the sale only reduced their total holding by 2.1%, so we're hesitant to read anything much into it, on its own.

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The Last 12 Months Of Insider Transactions At Real Brokerage

Notably, that recent sale by Lead Independent Director Larry Klane was not the only time they sold Real Brokerage shares this year. They previously made an even bigger sale of -US$879k worth of shares at a price of US$5.33 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$3.97. 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$20k for 5.00k shares. But insiders sold 2.54m shares worth US$12m. Over the last year we saw more insider selling of Real Brokerage shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Real Brokerage

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Insider Ownership Of Real Brokerage

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Real Brokerage insiders own about US$56m worth of shares. That equates to 6.7% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Real Brokerage Insider Transactions Indicate?

Insiders sold Real Brokerage shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Real Brokerage. In terms of investment risks, we've identified 1 warning sign with Real Brokerage and understanding it should be part of your investment process.

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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.