Yahoo Finance A number of insiders bought Dexus Convenience Retail REIT (ASX:DXC) stock last year, which is great news for shareholders
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Dexus Convenience Retail REIT (ASX:DXC), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Dexus Convenience Retail REIT
The Last 12 Months Of Insider Transactions At Dexus Convenience Retail REIT
The Independent Non-Executive Chairman of Dexus Asset Management Limited Jennifer Horrigan made the biggest insider purchase in the last 12 months. That single transaction was for AU$101k worth of shares at a price of AU$3.02 each. That means that even when the share price was higher than AU$2.77 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Dexus Convenience Retail REIT insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Dexus Convenience Retail REIT is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Dexus Convenience Retail REIT Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Dexus Convenience Retail REIT. Independent Non-Executive Director of Dexus Asset Management Limited Danielle Carter shelled out AU$25k for shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Insider Ownership Of Dexus Convenience Retail REIT
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Dexus Convenience Retail REIT insiders own about AU$17m worth of shares. That equates to 4.4% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Dexus Convenience Retail REIT Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Dexus Convenience Retail REIT insiders are doubting the company, and they do own shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Dexus Convenience Retail REIT has 3 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.
But note: Dexus Convenience Retail REIT may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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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