This Insider Has Just Sold Shares In Innovative Industrial Properties, Inc. (NYSE:IIPR)

June 14, 2021
  •  Updated
September 29, 2022
NYSE:IIPR
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Investors may wish to note that the Independent Director of Innovative Industrial Properties, Inc., Scott Shoemaker, recently netted US$95k from selling stock, receiving an average price of US$191. It might not be a huge sale, but it did reduce their holding size 16%, hardly encouraging.

See our latest analysis for Innovative Industrial Properties

Innovative Industrial Properties Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive Chairman, Alan Gold, sold US$1.9m worth of shares at a price of US$126 per share. That means that even when the share price was below the current price of US$192, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 only 4.0% of Alan Gold's holding.

Over the last year we saw more insider selling of Innovative Industrial Properties shares, than buying. 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:IIPR Insider Trading Volume June 15th 2021

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Does Innovative Industrial Properties Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.9% of Innovative Industrial Properties shares, worth about US$86m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Innovative Industrial Properties Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. But since Innovative Industrial Properties is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 3 warning signs for Innovative Industrial Properties you should be aware of.

Of course Innovative Industrial Properties 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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