Possible bearish signals as Apartment Income REIT Corp. (NYSE:AIRC) insiders disposed of US$1.3m worth of stock

In the last year, many Apartment Income REIT Corp. (NYSE:AIRC) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Apartment Income REIT

The Last 12 Months Of Insider Transactions At Apartment Income REIT

The Executive VP, Paul Beldin, made the biggest insider sale in the last 12 months. That single transaction was for US$766k worth of shares at a price of US$52.84 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$39.43. So it may not tell us anything about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 7.09k shares worth US$350k. But they sold 25.50k shares for US$1.3m. All up, insiders sold more shares in Apartment Income REIT than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

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. Apartment Income REIT insiders own about US$22m worth of shares. That equates to 0.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Apartment Income REIT Insiders?

The fact that there have been no Apartment Income REIT insider transactions recently certainly doesn't bother us. Still, the insider transactions at Apartment Income REIT in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Apartment Income REIT. Case in point: We've spotted 4 warning signs for Apartment Income REIT you should be aware of, and 3 of them are significant.

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.

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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.