How Much Are Monmouth Real Estate Investment Corporation (NYSE:MNR) Insiders Spending On Buying Shares?

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Monmouth Real Estate Investment Corporation (NYSE:MNR), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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'.

See our latest analysis for Monmouth Real Estate Investment

Monmouth Real Estate Investment Insider Transactions Over The Last Year

The Non-Executive Non-Independent Director, Samuel Landy, made the biggest insider sale in the last 12 months. That single transaction was for US$90k worth of shares at a price of US$11.39 each. That means that an insider was selling shares at slightly below the current price (US$14.54). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 2.2% of Samuel Landy's stake.

Over the last year, we can see that insiders have bought 21.31k shares worth US$273k. On the other hand they divested 15.56k shares, for US$188k. Overall, Monmouth Real Estate Investment insiders were net buyers during the last year. The chart below shows insider transactions (by companies and 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!

Monmouth Real Estate Investment 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.

Insiders at Monmouth Real Estate Investment Have Bought Stock Recently

There was some insider buying at Monmouth Real Estate Investment over the last quarter. Insiders shelled out US$21k for shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership of Monmouth Real Estate Investment

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Monmouth Real Estate Investment insiders own 3.2% of the company, worth about US$45m. 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 Monmouth Real Estate Investment Insiders?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Monmouth Real Estate Investment insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Monmouth Real Estate Investment. Case in point: We've spotted 2 warning signs for Monmouth Real Estate Investment you should be aware of, and 1 of these is a bit unpleasant.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. 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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