Stock Analysis

Have Insiders Been Selling Brixmor Property Group Inc. (NYSE:BRX) Shares?

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NYSE:BRX
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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 shareholders might well want to know whether insiders have been buying or selling shares in Brixmor Property Group Inc. (NYSE:BRX).

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, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. 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'.

See our latest analysis for Brixmor Property Group

The Last 12 Months Of Insider Transactions At Brixmor Property Group

Over the last year, we can see that the biggest insider sale was by the Executive VP, Steven Siegel, for US$153k worth of shares, at about US$20.46 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$23.18. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 2.1% of Steven Siegel's stake. Steven Siegel was the only individual insider to sell shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:BRX Insider Trading Volume July 2nd 2021

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

Does Brixmor Property Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Brixmor Property Group insiders own about US$39m 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 Brixmor Property Group Insiders?

The fact that there have been no Brixmor Property Group insider transactions recently certainly doesn't bother us. Our analysis of Brixmor Property Group insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Brixmor Property Group is showing 3 warning signs in our investment analysis, and 1 of those is a bit concerning...

But note: Brixmor Property Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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