We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Acadia Realty Trust (NYSE:AKR), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Acadia Realty Trust Insider Transactions Over The Last Year
Executive VP & COO Christopher Conlon made the biggest insider sale in the last 12 months. That single transaction was for US$254k worth of shares at a price of US$27.57 each. That means that even when the share price was below the current price of US$29.17, an insider wanted to cash in some shares. While sellers have a variety of reasons for selling, this isn’t particularly great to see. We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price. Please note, however, that this single sale was just 31.5% of Christopher Conlon’s stake.
We note that in the last year insiders divested 19.25k shares for a total of US$537k. Over the last year we saw more insider selling of Acadia Realty Trust shares, than buying. The sellers received a price of around US$27.90, on average. We don’t gain much confidence from insider selling near the recent share price. While some insiders have decided to take some money off the table, we wouldn’t put too much weight on this fact. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Have Acadia Realty Trust Insiders Traded Recently?
In the last quarter Chief Accounting Officer & Senior VP Richard Hartmann sold US$4.9k worth of equity. That’s not a lot. Looking at the net result, we don’t think this recent trading sheds much light on how insiders, as a group, are feeling about the company’s prospects.
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Acadia Realty Trust insiders own about US$16m worth of shares. That equates to 0.6% 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 Acadia Realty Trust Insiders?
Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. We’re a little cautious about the insider selling at Acadia Realty Trust. But we do like the fact that insiders own a fair chunk of the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.