Insider Spends US$5.7m Buying More Shares In American Assets Trust \

Those following along with American Assets Trust, Inc. (NYSE:AAT) will no doubt be intrigued by the recent purchase of shares by Ernest Rady, Chairman & CEO of the company, who spent a stonking US$5.7m on stock at an average price of US$17.78. While that only increased their holding size by 3.9%, it is still a big swing by our standards.

Check out our latest analysis for American Assets Trust

The Last 12 Months Of Insider Transactions At American Assets Trust

Notably, that recent purchase by Ernest Rady is the biggest insider purchase of American Assets Trust shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$18.91. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the American Assets Trust insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Ernest Rady.

Ernest Rady bought 767.07k shares over the last 12 months at an average price of US$23.85. 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!

American Assets 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.

Does American Assets Trust Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. American Assets Trust insiders own about US$164m worth of shares (which is 11% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The American Assets Trust Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about American Assets Trust. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for American Assets Trust you should be aware of, and 2 of them are a bit unpleasant.

Of course American Assets Trust 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, but not derivative transactions.

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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.