When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in First Capital Real Estate Investment Trust's (TSE:FCR.UN) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
First Capital Real Estate Investment Trust Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Trustee Leonard Abramsky was not their only acquisition of First Capital Real Estate Investment Trust shares this year. They previously made an even bigger purchase of CA$298k worth of shares at a price of CA$14.90 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$17.11. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid CA$591k for 39.14k shares. But insiders sold 12.04k shares worth CA$183k. In total, First Capital 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!
First Capital 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.
Insiders At First Capital Real Estate Investment Trust Have Bought Stock Recently
We saw some First Capital Real Estate Investment Trust insider buying shares in the last three months. In total, insiders bought CA$34k worth of shares in that time. But Independent Trustee Leonard Abramsky sold CA$18k worth. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.
Does First Capital Real Estate Investment Trust Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.3% of First Capital Real Estate Investment Trust shares, worth about CA$11m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At First Capital Real Estate Investment Trust Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in First Capital Real Estate Investment Trust and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing First Capital Real Estate Investment Trust. Our analysis shows 3 warning signs for First Capital Real Estate Investment Trust (2 are significant!) and we strongly recommend you look at them before investing.
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.
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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.
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