Agree Realty Corporation (NYSE:ADC) shareholders (or potential shareholders) will be happy to see that the Independent Director, John Rakolta, recently bought a whopping US$1.2m worth of stock, at a price of US$63.63. While that only increased their holding size by 9.0%, it is still a big swing by our standards.
Agree Realty Insider Transactions Over The Last Year
In fact, the recent purchase by John Rakolta was the biggest purchase of Agree Realty shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$64.94. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Agree Realty share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 43.47k shares for US$2.8m. But insiders sold 2.00k shares worth US$135k. In the last twelve months there was more buying than selling by Agree Realty insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Agree Realty insiders own 2.0% of the company, worth about US$83m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Agree Realty Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Agree Realty insiders are well aligned, and that they may think the share price is too low. 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. When we did our research, we found 3 warning signs for Agree Realty (1 is a bit unpleasant!) that we believe deserve your full attention.
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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