Choice Properties Real Estate Investment Trust (TSE:CHP.UN) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 4.0% resulting in a CA$184m addition to the company’s market value. As a result, their original purchase of CA$2.8m worth of stock is now worth CA$2.8m.
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 Choice Properties Real Estate Investment Trust
The Last 12 Months Of Insider Transactions At Choice Properties Real Estate Investment Trust
Over the last year, we can see that the biggest insider purchase was by President & CEO Rael Diamond for CA$1.5m worth of shares, at about CA$14.38 per share. That implies that an insider found the current price of CA$14.46 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. In this case we’re pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid CA$2.8m for 195.65k shares. But they sold 5.00k shares for CA$75k. In total, Choice Properties Real Estate Investment Trust insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Choice Properties 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.
Choice Properties Real Estate Investment Trust Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Choice Properties Real Estate Investment Trust. Overall, two insiders shelled out CA$79k for shares in the company — and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Choice Properties Real Estate Investment Trust
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be encouraged to build the company for the long term. Choice Properties Real Estate Investment Trust insiders own about CA$24m worth of shares. That equates to 0.2% 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.
So What Do The Choice Properties Real Estate Investment Trust Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Choice Properties Real Estate Investment Trust insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Choice Properties Real Estate Investment Trust. When we did our research, we found 4 warning signs for Choice Properties Real Estate Investment Trust (2 can’t be ignored!) that we believe deserve your full attention.
But note: Choice Properties 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.
Have feedback on this article? Concerned about the content? get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a $30 Amazon Gift Card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. sign up here