Yahoo Finance Trade Alert: Daniel Eggert At Melcor Real Estate Investment Trust (TSE:MR.UN), Has Just Spent CA$51k Buying 101% More Shares
Even if it's not a huge purchase, we think it was good to see that Daniel Eggert, a Melcor Real Estate Investment Trust (TSE:MR.UN) insider, recently shelled out CA$51k to buy stock, at CA$6.74 per share. While that isn't the hugest buy, it actually boosted their shareholding by 101%, which is good to see.
Check out our latest analysis for Melcor Real Estate Investment Trust
The Last 12 Months Of Insider Transactions At Melcor Real Estate Investment Trust
Notably, that recent purchase by insider Daniel Eggert was not the only time they traded Melcor Real Estate Investment Trust shares this year. Earlier in the year, they sold shares at a price ofCA$6.95 per share in a -CA$68k transaction. So what is clear is that an insider saw fit to sell at around the current price of CA$6.70. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Happily, we note that in the last year insiders paid CA$94k for 15.74k shares. But they sold 10.80k shares for CA$75k. Overall, Melcor Real Estate Investment Trust insiders were net buyers during the last year. They paid about CA$5.98 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Melcor Real Estate Investment Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by 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. Our data suggests Melcor Real Estate Investment Trust insiders own 2.4% of the company, worth about CA$4.7m. We prefer to see high levels of insider ownership.
So What Do The Melcor Real Estate Investment Trust Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Melcor Real Estate Investment 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. For instance, we've identified 3 warning signs for Melcor Real Estate Investment Trust (2 are a bit unpleasant) you should be aware of.
But note: Melcor Real Estate Investment 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.
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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.
