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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Charter Hall Retail Real Estate Investment Trust (ASX:CQR), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
See our latest analysis for Charter Hall Retail Real Estate Investment Trust
Charter Hall Retail Real Estate Investment Trust Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chairman of Charter Hall Retail Management Limited Roger Davis for AU$107k worth of shares, at about AU$4.26 per share. That means that an insider was happy to buy shares at around the current price of AU$4.37. 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. 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 Charter Hall Retail Real Estate Investment Trust insiders decided to buy shares at close to current prices.
In the last twelve months insiders paid AU$156k for 36400 shares purchased. Charter Hall Retail Real Estate Investment Trust may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by individuals) over the last year. 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).