Whilst it may not be a huge deal, we thought it was good to see that the Allied Properties Real Estate Investment Trust (TSE:AP.UN) Executive Vice President of Development, Hugh Clark, recently bought CA$72k worth of stock, for CA$35.99 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 12%.
The Last 12 Months Of Insider Transactions At Allied Properties Real Estate Investment Trust
In the last twelve months, the biggest single purchase by an insider was when President Michael Emory bought CA$2.0m worth of shares at a price of CA$40.34 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$35.65). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 74.89k shares for CA$3.1m. But insiders sold 19.49k shares worth CA$1.0m. Overall, Allied Properties Real Estate Investment Trust insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Allied Properties Real Estate Investment Trust insiders own about CA$58m worth of shares. That equates to 1.3% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Allied Properties Real Estate Investment Trust Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Allied Properties Real Estate Investment Trust insiders are well aligned, and that they may think the share price is too low. 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 4 warning signs for Allied Properties Real Estate Investment Trust (of which 2 shouldn't be ignored!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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