Some Duke Realty Corporation (NYSE:DRE) shareholders may be a little concerned to see that the Chairman & CEO, James Connor, recently sold a whopping US$1.0m worth of stock at a price of US$35.08 per share. That sale reduced their total holding by 13% which is hardly insignificant, but far from the worst we’ve seen.
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The Last 12 Months Of Insider Transactions At Duke Realty
The Executive VP & CFO, Mark Denien, made the biggest insider sale in the last 12 months. That single transaction was for US$1.4m worth of shares at a price of US$29.49 each. That means that even when the share price was below the current price of US$34.63, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. It is worth noting that this sale was 74% of Mark Denien’s holding.
Over the last year, we note insiders sold 141377 shares worth US$4.4m. Insiders in Duke Realty didn’t buy any shares in the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Insider Ownership
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. Duke Realty insiders own about US$26m 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 Duke Realty Insiders?
An insider hasn’t bought Duke Realty stock in the last three months, but there was some selling. And there weren’t any purchases to give us comfort, over the last year. But it is good to see that Duke Realty is growing earnings. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’re in no rush to buy! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Duke Realty.
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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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