Stock Analysis

How Many Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) Shares Did Insiders Buy, In The Last Year?

NasdaqCM:WHLR
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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

Check out our latest analysis for Wheeler Real Estate Investment Trust

Wheeler Real Estate Investment Trust Insider Transactions Over The Last Year

The CEO & Director Daniel Khoshaba made the biggest insider purchase in the last 12 months. That single transaction was for US$206k worth of shares at a price of US$1.81 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$2.84. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Wheeler Real Estate Investment Trust insiders may have bought shares in the last year, but they didn't sell any. They paid about US$1.63 on average. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

insider-trading-volume
NasdaqCM:WHLR Insider Trading Volume January 6th 2021

Wheeler Real Estate Investment Trust is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Wheeler Real Estate Investment Trust

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data indicates that Wheeler Real Estate Investment Trust insiders own about US$3.7m worth of shares (which is 13% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.

So What Do The Wheeler Real Estate Investment Trust Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Wheeler Real Estate Investment Trust insiders bought more shares in the company. 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 - Wheeler Real Estate Investment Trust has 2 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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. 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.
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