Insider Buying: The Industrials REIT Limited (JSE:MLI) Independent Non-Executive Director Just Bought UK£685k Worth Of Shares

Published
June 27, 2022
JSE:MLI
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Even if it's not a huge purchase, we think it was good to see that Louisa Bell, the Independent Non-Executive Director of Industrials REIT Limited (JSE:MLI) recently shelled out R685k to buy stock, at R34.24 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

View our latest analysis for Industrials REIT

Industrials REIT Insider Transactions Over The Last Year

Notably, that recent purchase by Louisa Bell is the biggest insider purchase of Industrials REIT shares that we've seen in the last year. That means that even when the share price was higher than R32.89 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 56.61k shares worth R2.0m. But they sold 12.67k shares for R405k. In total, Industrials REIT insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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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JSE:MLI Insider Trading Volume June 27th 2022

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Industrials REIT Boast High Insider Ownership?

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. It appears that Industrials REIT insiders own 7.2% of the company, worth about R692m. 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 Industrials REIT Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Industrials REIT insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Industrials REIT is showing 3 warning signs in our investment analysis, and 1 of those is potentially serious...

Of course Industrials REIT 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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