Whilst it may not be a huge deal, we thought it was good to see that the Agree Realty Corporation (NYSE:ADC) Independent Director, Simon Leopold, recently bought US$83k worth of stock, for US$55.25 per share. Even though that isn’t a massive buy, it did increase their holding by 54%, which is a arguably a good sign.
The Last 12 Months Of Insider Transactions At Agree Realty
Over the last year, we can see that the biggest insider purchase was by Executive Chairman of the Board Richard Agree for US$1.5m worth of shares, at about US$68.44 per share. That means that an insider was happy to buy shares at above the current price of US$62.06. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid US$2.9m for 43.67k shares. On the other hand they divested 1034 shares, for US$66k. In total, Agree Realty insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by 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!
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.
Insider Ownership of Agree Realty
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Agree Realty insiders own about US$65m worth of shares. That equates to 2.1% 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 Agree Realty Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Agree Realty shares, given these transactions (along with notable insider ownership of the company). So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. For example, Agree Realty has 4 warning signs (and 1 which can’t be ignored) we think you should know about.
Of course Agree Realty 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.
Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email firstname.lastname@example.org.
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. Thank you for reading.