Don't Ignore The Insider Selling In One Liberty Properties

Anyone interested in One Liberty Properties, Inc. (NYSE:OLP) should probably be aware that the Senior VP & Director, Jeffrey Gould, recently divested US$416k worth of shares in the company, at an average price of US$23.11 each. On the bright side, that sale was only 4.5% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for One Liberty Properties

The Last 12 Months Of Insider Transactions At One Liberty Properties

Notably, that recent sale by Jeffrey Gould is the biggest insider sale of One Liberty Properties shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$23.37. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 4.5% of Jeffrey Gould's holding.

Insiders in One Liberty Properties didn't buy any shares in the last year. 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 One Liberty Properties

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 17% of One Liberty Properties shares, worth about US$83m. 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 Does This Data Suggest About One Liberty Properties Insiders?

Insiders sold One Liberty Properties shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that One Liberty Properties has 4 warning signs (2 don't sit too well with us!) that deserve your attention before going any further with your analysis.

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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