It’s not uncommon to see companies perform well years after insider purchases. The downside to this is that there are many examples of insiders dumping stocks to a period of poor performance. So we’ll see if insiders have bought stocks in North American residential investment fund Morguard (TSE: MRG.UN).
What are insiders buying?
It is perfectly legal for insiders of the company, including members of the board of directors, to buy and sell shares in the company. However, such insiders should disclose their trading activities and not trade inside information.
We will never suggest that investors base their decisions solely on what the directors of the company do. But it makes perfect sense to keep track of what insiders are doing. For example, Harvard University study found that “insider buying generates an abnormal profit of over 6% per year.”
Insider Transactions in the Last 12 Months at Morguard North American Residential Real Estate Investment Trust
Over the past year, we see that the largest insider purchase was made by Independent Trustee Bruce Robertson for C $ 182,000 in shares at about C $ 15.01 per share. Although the purchase was made at a significantly lower price than the recent price (CAD 17.50), we still believe that insider buying is a positive development. Since the stock was purchased at a lower price, this particular purchase tells us little about how insiders think about the current stock price.
The chart below shows insider transactions (by companies and individuals) over the past year. By clicking on the chart below, you can see the exact details of each insider transaction!
There are always a lot of stocks that insiders buy. So if it suits your style, you can check each promotion one by one or take a look at this is free list of companies. (Hint: Insiders bought them.)
North American residential investment fund Morguard insiders sell shares
Over the past three months, we have seen significant insider trading at the Morguard North American Residential Real Estate Investment Trust. In particular, during this time, Senior Vice President Paul Miatello refused shares in the amount of 70 thousand Canadian dollars, and we did not record any purchases. This may indicate that some insiders think the stock is not cheap.
Many investors like to check how much of the company is owned by insiders. Typically, the higher the share of insiders, the more likely it is that insiders will be interested in starting a company in the long run. By all accounts, insiders at the Morguard North American Residential Real Estate Investment Trust own 2.3% of the company, valued at approximately C $ 22 million. This level of insider ownership is good, but it doesn’t really stand out. This certainly assumes a reasonable degree of consistency.
So what does this data say about insiders at the Morguard North American Residential Real Estate Investment Trust?
An insider recently sold shares in the Morguard North American Residential Real Estate Investment Trust, but they did not buy them. On the other hand, insider trading over the past year has been encouraging. We love that insiders own a fair share of the company. So the recent sales don’t really bother us. In addition to information on ongoing insider trading, it is helpful to identify the risks faced by Morguard North American Residential Real Estate Investment Trust. When we did our research, we found 5 warning signs for North American residential investment fund Morguard (1 cannot be ignored!) Which we believe deserve your full attention.
Sure Morguard North American Residential Real Estate Investment Trust May Not Be Your Best Buy… So you might want to see it is free a collection of high quality companies.
For the purposes of this article, insiders are those people who report their transactions to the appropriate regulatory authority. We currently account for open market transactions and private sales, but not derivative transactions.
This article by Simply Wall St is general in nature. It is not a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. We strive to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not include the latest announcements from price-sensitive companies or quality content. Simply Wall St has no position in any of the mentioned promotions.
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