When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in European Residential Real Estate Investment Trust’s (TSE:ERE.UN) instance, it’s good news for shareholders.
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.
Check out our latest analysis for European Residential Real Estate Investment Trust
The Last 12 Months Of Insider Transactions At European Residential Real Estate Investment Trust
Over the last year, we can see that the biggest insider purchase was by insider Stephen Co for CA$201k worth of shares, at about CA$4.67 per share. That means that an insider was happy to buy shares above the current price of CA$3.30. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they view the stock as good value, even at a higher price.
While European Residential Real Estate Investment Trust insiders bought shares during the last year, they didn’t sell. 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, individually and the date!
European Residential 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.
Does European Residential Real Estate Investment Trust Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivized to build the company for the long term. From looking at our data, insiders own CA$5.5m worth of European Residential Real Estate Investment Trust stock, about 0.7% of the company. We consider this fairly low insider ownership.
So What Does This Data Suggest About European Residential Real Estate Investment Trust Insiders?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we’d be more comfortable if they owned more European Residential Real Estate Investment Trust stock. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. For example, the European Residential Real Estate Investment Trust has 4 warning signs (and 2 which don’t sit too well with us) we think you should know about.
Of course European Residential Real Estate Investment Trust 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.
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