Yahoo Finance How Much Are Allied Properties Real Estate Investment Trust (TSE:AP.UN) Insiders Taking Off The Table?
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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Allied Properties Real Estate Investment Trust (TSE:AP.UN).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
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
Chairman of the Board Gordon Cunningham made the biggest insider sale in the last 12 months. That single transaction was for CA$345k worth of shares at a price of CA$41.35 each. So it’s clear an insider wanted to take some cash off the table, even below the current price of CA$47.32. Even though it doesn’t necessarily mean anything, that’s certainly not a positive sign, in our book. When an insider sells below the current price, it does tend to make us wonder about the current valuation. It is worth noting that this sale was only 17.5% of Gordon Cunningham’s holding.
Over the last year we saw more insider selling of Allied Properties Real Estate Investment Trust shares, than buying. The sellers received a price of around CA$41.42, on average. We don’t gain confidence from insider selling below the recent share price. Since insiders sell for many reasons, we wouldn’t put too much weight on it. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Insiders at Allied Properties Real Estate Investment Trust Have Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at Allied Properties Real Estate Investment Trust. Margaret Nelligan shelled out CA$24k for shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Does Allied Properties Real Estate Investment Trust Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Allied Properties Real Estate Investment Trust insiders own about CA$74m worth of shares. That equates to 1.5% 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.
So What Do The Allied Properties Real Estate Investment Trust Insider Transactions Indicate?
We note a that there has been a tad more insider buying than selling, recently. But the net investment is not enough to encourage us much. Our analysis of Allied Properties Real Estate Investment Trust insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
