Charles Young Is The Executive VP & COO of Invitation Homes Inc. (NYSE:INVH) And They Just Sold 33% Of Their Shares

We wouldn't blame Invitation Homes Inc. (NYSE:INVH) shareholders if they were a little worried about the fact that Charles Young, the Executive VP & COO recently netted about US$1.6m selling shares at an average price of US$29.24. That's a big disposal, and it decreased their holding size by 33%, which is notable but not too bad.

Check out our latest analysis for Invitation Homes

The Last 12 Months Of Insider Transactions At Invitation Homes

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Dallas Tanner, for US$2.4m worth of shares, at about US$29.58 per share. That means that an insider was selling shares at slightly below the current price (US$30.84). 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 only 25% of Dallas Tanner's holding.

In the last year Invitation Homes insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Invitation Homes

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Invitation Homes insiders own about US$54m worth of shares. That equates to 0.3% of the company. 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 Invitation Homes Insider Transactions Indicate?

An insider hasn't bought Invitation Homes stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Invitation Homes makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Invitation Homes. To that end, you should learn about the 5 warning signs we've spotted with Invitation Homes (including 1 which is concerning).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

If you’re looking to trade Invitation Homes, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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