Alan Gardner Is The Chairman & Lead Independent Director of Community Healthcare Trust Incorporated (NYSE:CHCT) And They Just Picked Up 5.9% More Shares

Even if it's not a huge purchase, we think it was good to see that Alan Gardner, the Chairman & Lead Independent Director of Community Healthcare Trust Incorporated (NYSE:CHCT) recently shelled out US$99k to buy stock, at US$36.74 per share. However, it only increased their shares held by 5.9%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Community Healthcare Trust

Community Healthcare Trust Insider Transactions Over The Last Year

In fact, the recent purchase by Alan Gardner was the biggest purchase of Community Healthcare Trust shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$36.11 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Community Healthcare Trust insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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 Community Healthcare Trust

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 3.4% of Community Healthcare Trust shares, worth about US$30m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Community Healthcare Trust Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Community Healthcare Trust we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Community Healthcare Trust. Our analysis shows 3 warning signs for Community Healthcare Trust (1 is potentially serious!) and we strongly recommend you look at these before investing.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.