Yahoo Finance The President of Columbia Property Trust, Inc. (NYSE:CXP), E. Mills, Just Bought 4.6% More Shares
Investors who take an interest in Columbia Property Trust, Inc. (NYSE:CXP) should definitely note that the President, E. Mills, recently paid US$9.64 per share to buy US$203k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 4.6%.
View our latest analysis for Columbia Property Trust
Columbia Property Trust Insider Transactions Over The Last Year
Notably, that recent purchase by E. Mills is the biggest insider purchase of Columbia Property Trust shares that we've seen in the last year. That means that even when the share price was higher than US$8.75 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Columbia Property Trust insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$13.15. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Columbia Property Trust is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Columbia Property 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Columbia Property Trust insiders own 0.9% of the company, worth about US$9.6m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Columbia Property Trust Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Columbia Property Trust insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Columbia Property Trust you should know about.
But note: Columbia Property Trust may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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