Whilst it may not be a huge deal, we thought it was good to see that the Warehouse REIT plc (LON:WHR) Independent Non-Executive Director, Aimée Joan Pitman, recently bought UK£75k worth of stock, for UK£1.67 per share. However, it only increased their shares held by 6.5%, and it wasn't a huge purchase by absolute value, either.
Warehouse REIT Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Non-Executive Director Aimée Joan Pitman was not their only acquisition of Warehouse REIT shares this year. They previously made an even bigger purchase of UK£100k worth of shares at a price of UK£1.62 per share. That means that even when the share price was higher than UK£1.61 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Aimée Joan Pitman.
Aimée Joan Pitman purchased 143.92k shares over the year. The average price per share was UK£1.63. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Warehouse REIT
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 5.6% of Warehouse REIT shares, worth about UK£39m. 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 Warehouse REIT Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Warehouse REIT 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Warehouse REIT.
Of course Warehouse REIT may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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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.