Yahoo Finance Great news for Morguard North American Residential Real Estate Investment Trust (TSE:MRG.UN): Insiders acquired stock in large numbers last year
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Morguard North American Residential Real Estate Investment Trust's (TSE:MRG.UN) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Morguard North American Residential Real Estate Investment Trust
The Last 12 Months Of Insider Transactions At Morguard North American Residential Real Estate Investment Trust
The Independent Trustee Bruce Robertson made the biggest insider purchase in the last 12 months. That single transaction was for CA$160k worth of shares at a price of CA$17.85 each. That implies that an insider found the current price of CA$18.01 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Morguard North American Residential Real Estate Investment Trust insiders decided to buy shares at close to current prices.
In the last twelve months Morguard North American Residential Real Estate Investment Trust insiders were buying shares, but not selling. 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!
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.
Insider Ownership Of Morguard North American Residential Real Estate Investment Trust
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Morguard North American Residential Real Estate Investment Trust insiders own 2.4% of the company, worth about CA$25m. 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 Morguard North American Residential Real Estate Investment Trust Insiders?
The fact that there have been no Morguard North American Residential Real Estate Investment Trust insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Morguard North American Residential Real Estate Investment Trust insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 3 warning signs for Morguard North American Residential Real Estate Investment Trust (1 can't be ignored) you should be aware of.
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.
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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.
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