Yahoo Finance Prologis, Inc. (NYSE:PLD) insiders who sold US$54m worth of stock earlier this year are probably glad they did so as market cap slides to US$77b
Insiders at Prologis, Inc. (NYSE:PLD) sold US$54m worth of stock at an average price of US$147 a share over the past year, making the most of their investment. The company’s market cap plunged by US$6.4b after price dropped by 7.8% last week but insiders were able to limit their loss to an extent.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Prologis
The Last 12 Months Of Insider Transactions At Prologis
The Co-Founder, Hamid Moghadam, made the biggest insider sale in the last 12 months. That single transaction was for US$46m worth of shares at a price of US$145 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$102. So it may not shed much light on insider confidence at current levels.
Over the last year we saw more insider selling of Prologis shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Prologis better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership Of Prologis
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.1% of Prologis shares, worth about US$91m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Prologis Tell Us?
It doesn't really mean much that no insider has traded Prologis shares in the last quarter. Still, the insider transactions at Prologis in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Prologis. For instance, we've identified 3 warning signs for Prologis (2 are concerning) you should be aware of.
But note: Prologis 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.
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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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