Stock Analysis

Don't Ignore The Fact That This Insider Just Sold Some Shares In Equity Residential (NYSE:EQR)

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NYSE:EQR
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Anyone interested in Equity Residential (NYSE:EQR) should probably be aware that the Chief Investment Officer, Alexander Brackenridge, recently divested US$166k worth of shares in the company, at an average price of US$67.11 each. On the bright side, that sale was only 8.1% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Equity Residential

Equity Residential Insider Transactions Over The Last Year

In fact, the recent sale by Alexander Brackenridge was the biggest sale of Equity Residential shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$66.86. 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.

Insiders in Equity Residential didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:EQR Insider Trading Volume February 18th 2021

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

Does Equity Residential Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Equity Residential insiders own 1.1% of the company, worth about US$290m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Equity Residential Insiders?

Insiders haven't bought Equity Residential stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 4 warning signs for Equity Residential (2 make us uncomfortable) you should be aware of.

But note: Equity Residential 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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