Have Global Net Lease Insiders Been Selling Stock?

We wouldn't blame Global Net Lease, Inc. (NYSE:GNL) shareholders if they were a little worried about the fact that Nicholas Schorsch, a company insider, recently netted about US$2.8m selling shares at an average price of US$7.11. That's a big disposal, and it decreased their holding size by 15%, which is notable but not too bad.

See our latest analysis for Global Net Lease

Global Net Lease Insider Transactions Over The Last Year

In fact, the recent sale by Nicholas Schorsch was the biggest sale of Global Net Lease shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$7.19. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

The chart below shows insider transactions (by companies and 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 Of Global Net Lease

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Global Net Lease insiders own about US$8.9m worth of shares (which is 0.6% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Global Net Lease Insider Transactions Indicate?

An insider sold Global Net Lease shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Global Net Lease. Our analysis shows 3 warning signs for Global Net Lease (2 shouldn't be ignored!) and we strongly recommend you look at them before investing.

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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 of direct interests only, but not derivative transactions or indirect interests.

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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.

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