Yahoo Finance Have Insiders Been Selling Allied Properties Real Estate Investment Trust (TSE:AP.UN) Shares This Year?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Allied Properties Real Estate Investment Trust (TSE:AP.UN), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for Allied Properties Real Estate Investment Trust
The Last 12 Months Of Insider Transactions At Allied Properties Real Estate Investment Trust
The President, Michael Emory, made the biggest insider sale in the last 12 months. That single transaction was for CA$1.5m worth of shares at a price of CA$49.16 each. That means that an insider was selling shares at around the current price of CA$49.03. While insider selling is a negative, to us, it is more negative if the shares are sold 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.
In the last twelve months insiders purchased 7626 shares for CA$260k. But insiders sold 269k shares worth CA$2.6m. Over the last year we saw more insider selling of Allied Properties Real Estate Investment Trust shares, than buying. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Does Allied Properties Real Estate Investment Trust 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. It appears that Allied Properties Real Estate Investment Trust insiders own 1.4% of the company, worth about CA$76m. 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 Does This Data Suggest About Allied Properties Real Estate Investment Trust Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at Allied Properties Real Estate Investment Trust in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Allied Properties Real Estate Investment Trust.
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.
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