Corporate Office Properties Trust (NYSE:OFC) insiders sold US$674k worth of stock suggesting impending weakness.

By
Simply Wall St
Published
May 10, 2022
NYSE:OFC
Source: Shutterstock

Quite a few Corporate Office Properties Trust (NYSE:OFC) insiders sold their shares over the past year, which may be a cause for concern. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Corporate Office Properties Trust

Corporate Office Properties Trust Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Trustee C. Pickett for US$499k worth of shares, at about US$24.97 per share. That means that an insider was happy to buy shares at around the current price of US$25.70. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Corporate Office Properties Trust share holders is that an insider was buying at near the current price. C. Pickett was the only individual insider to buy shares in the last twelve months.

In total, Corporate Office Properties Trust insiders sold more than they bought over 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:OFC Insider Trading Volume May 10th 2022

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Insiders at Corporate Office Properties Trust Have Bought Stock Recently

At Corporate Office Properties Trust,over the last quarter, we have observed quite a lot more insider buying than insider selling. We can see that Independent Trustee C. Pickett paid US$499k for shares in the company. But insider Gregory Thor sold shares worth US$126k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership of Corporate Office Properties Trust

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Corporate Office Properties Trust insiders own 0.3% of the company, worth about US$10m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Corporate Office Properties Trust Insider Transactions Indicate?

The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn't so positive. We don't take much heart from transactions by Corporate Office Properties Trust insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Corporate Office Properties Trust. In terms of investment risks, we've identified 1 warning sign with Corporate Office Properties Trust and understanding it should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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