Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Firm Capital Apartment Real Estate Investment Trust (CVE:FCA.U), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Firm Capital Apartment Real Estate Investment Trust Insider Transactions Over The Last Year
The Independent Trustee Pasquale DiCapo made the biggest insider purchase in the last 12 months. That single transaction was for CA$227k worth of shares at a price of CA$7.57 each. So it's clear an insider wanted to buy, at around the current price, which is CA$8.38. Of course they may have changed their mind. But this suggests they are optimistic. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
Firm Capital Apartment Real Estate Investment Trust 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Firm Capital Apartment Real Estate Investment Trust insiders own 13% of the company, worth about CA$8.1m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Firm Capital Apartment Real Estate Investment Trust Insiders?
The fact that there have been no Firm Capital Apartment Real Estate Investment Trust insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Firm Capital Apartment Real Estate Investment Trust insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Firm Capital Apartment Real Estate Investment Trust. At Simply Wall St, we've found that Firm Capital Apartment Real Estate Investment Trust has 5 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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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