Yahoo Finance Read This Before Selling Charter Hall Retail Real Estate Investment Trust (ASX:CQR) Shares
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. 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.
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
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
Chairman of Charter Hall Retail Management Limited Roger Davis made the biggest insider purchase in the last 12 months. That single transaction was for AU$107k worth of shares at a price of AU$4.26 each. So it’s clear an insider wanted to buy, at around the current price. That means they have been optimistic about the company in the past, though they may have changed their mind. In any event it’s generally a positive if insiders are buying shares at around the current price.
Over the last year, we can see that insiders have bought 36.40k shares worth AU$156k. Overall, Charter Hall Retail Real Estate Investment Trust insiders were net buyers last year. They paid about AU$4.29 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of AU$4.60. You can see a visual depiction of insider transactions over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at Charter Hall Retail Real Estate Investment Trust Have Bought Stock Recently
There was some insider buying at Charter Hall Retail Real Estate Investment Trust over the last quarter. Non-Executive Director of Charter Hall Retail Management Limited Michael Gorman bought AU$50k worth of shares in that time. It’s great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Insider Ownership
Many investors like to check how much of a company is owned by 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. Charter Hall Retail Real Estate Investment Trust insiders own about AU$3.0m worth of shares (which is 0.2% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Charter Hall Retail Real Estate Investment Trust Insider Transactions Indicate?
We note a that there has been a tad more insider buying than selling, recently. But overall the difference isn’t worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Charter Hall Retail Real Estate Investment Trust insiders are doubting the company. Of course, the future is what matters most. So if you are interested in Charter Hall Retail Real Estate Investment Trust, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
