Stock Analysis

The Chairman & CEO of American Assets Trust, Inc. (NYSE:AAT), Ernest Rady, Just Bought A Few More Shares

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American Assets Trust, Inc. (NYSE:AAT) shareholders (or potential shareholders) will be happy to see that the Chairman & CEO, Ernest Rady, recently bought a whopping US$879k worth of stock, at a price of US$21.98. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.5%.

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American Assets Trust Insider Transactions Over The Last Year

In fact, the recent purchase by Chairman & CEO Ernest Rady was not their only acquisition of American Assets Trust shares this year. Earlier in the year, they paid US$30.64 per share in a US$1.7m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$17.40). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Ernest Rady was the only individual insider to buy during the last year.

Ernest Rady purchased 447.07k shares over the year. The average price per share was US$28.20. 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!

NYSE:AAT Insider Trading Volume March 18th 2023

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

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. We usually like to see fairly high levels of insider ownership. American Assets Trust insiders own 11% of the company, currently worth about US$153m based on the recent share price. 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 Does This Data Suggest About American Assets Trust Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest American Assets Trust insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing American Assets Trust. For example, American Assets Trust has 3 warning signs (and 2 which are a bit concerning) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

What are the risks and opportunities for American Assets Trust?

American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust, or REIT, headquartered in San Diego, California.

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  • Trading at 24.1% below our estimate of its fair value

  • Earnings grew by 53.3% over the past year


  • Earnings are forecast to decline by an average of 7.7% per year for the next 3 years

  • Interest payments are not well covered by earnings

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