We wouldn't blame Digital Realty Trust, Inc. (NYSE:DLR) shareholders if they were a little worried about the fact that David Ruberg, a company insider, recently netted about US$30m selling shares at an average price of US$152. That sale reduced their total holding by 36% which is hardly insignificant, but far from the worst we've seen.
Digital Realty Trust Insider Transactions Over The Last Year
Notably, that recent sale by David Ruberg is the biggest insider sale of Digital Realty Trust shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$150. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Digital Realty Trust insiders didn't buy any shares over the last year. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Digital Realty 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. Digital Realty Trust insiders own about US$99m worth of shares. That equates to 0.2% of the company. 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 Digital Realty Trust Insiders?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Digital Realty Trust. To help with this, we've discovered 6 warning signs (2 are potentially serious!) that you ought to be aware of before buying any shares in Digital Realty Trust.
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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