Some PS Business Parks, Inc. (NYSE:PSB) shareholders may be a little concerned to see that the Director, Joseph Russell, recently sold a substantial US$935k worth of stock at a price of US$156 per share. That's a big disposal, and it decreased their holding size by 20%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At PS Business Parks
Notably, that recent sale by Joseph Russell is the biggest insider sale of PS Business Parks shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$155. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Joseph Russell sold a total of 18.50k shares over the year at an average price of US$146. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership of PS Business Parks
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. PS Business Parks insiders own about US$45m worth of shares. That equates to 0.8% of the company. 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 PS Business Parks Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PS Business Parks. Case in point: We've spotted 1 warning sign for PS Business Parks you should be aware of.
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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, but not derivative transactions.
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