Possible bearish signals as Duke Realty Corporation (NYSE:DRE) insiders disposed of US$533k worth of stock

By
Simply Wall St
Published
April 09, 2022
NYSE:DRE
Source: Shutterstock

Quite a few Duke Realty Corporation (NYSE:DRE) insiders sold their shares over the past year, which may be a cause for concern. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Duke Realty

Duke Realty Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Peter Scott, sold US$427k worth of shares at a price of US$53.41 per share. That means that even when the share price was below the current price of US$59.52, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. It is worth noting that this sale was only 45% of Peter Scott's holding.

Duke Realty insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:DRE Insider Trading Volume April 9th 2022

I will like Duke Realty better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

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. It appears that Duke Realty insiders own 0.2% of the company, worth about US$35m. 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 Do The Duke Realty Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at Duke Realty in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Duke Realty. Be aware that Duke Realty is showing 4 warning signs in our investment analysis, and 2 of those make us uncomfortable...

Of course Duke Realty may not be the best stock to buy. So you may wish to see this free collection of high quality 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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