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In the last year, multiple insiders have substantially increased their holdings of Real Estate Investors plc (LON:RLE) stock, indicating that insiders' optimism about the company's prospects has increased.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Real Estate Investors
The Last 12 Months Of Insider Transactions At Real Estate Investors
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Paramjit Bassi bought UK£1.1m worth of shares at a price of UK£0.28 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£0.28. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Real Estate Investors insiders decided to buy shares at close to current prices.
Real Estate Investors insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Does Real Estate Investors Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 12% of Real Estate Investors shares, worth about UK£5.7m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Real Estate Investors Insiders?
The fact that there have been no Real Estate Investors insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Real Estate Investors stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Real Estate Investors. Be aware that Real Estate Investors is showing 5 warning signs in our investment analysis, and 2 of those are significant...