Some Mid-America Apartment Communities, Inc. (NYSE:MAA) shareholders may be a little concerned to see that the Director, David Stockert, recently sold a whopping US$682k worth of stock at a price of US$136 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.9%.
Mid-America Apartment Communities Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Director, Claude Nielsen, for US$714k worth of shares, at about US$110 per share. That means that even when the share price was below the current price of US$135, an insider wanted to cash in some shares. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 35% of Claude Nielsen's holding.
We note that in the last year insiders divested 15324 shares for a total of US$1.8m. Mid-America Apartment Communities insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Mid-America Apartment Communities better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Mid-America Apartment Communities Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Mid-America Apartment Communities insiders own about US$99m worth of shares. That equates to 0.6% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Mid-America Apartment Communities Tell Us?
An insider hasn't bought Mid-America Apartment Communities stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! Of course, the future is what matters most. So if you are interested in Mid-America Apartment Communities, you should check out this free report on analyst forecasts for the company.
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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