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Real Estate News 24

insider trading volume

Great news for Allied Properties Real Estate Investment Trust (TSE:AP.UN): Insiders acquired stock in large numbers last year

Beth McCandry

Usually, when an insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Allied Properties Real Estate Investment Trust (TSE:AP.UN), that sends out a positive message to the company’s shareholders.

Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

However if you’d rather see where the opportunities and risks are within AP.UN’s industryyou can check out our analysis on the CA REITs industry.

The Last 12 Months Of Insider Transactions At Allied Properties Real Estate Investment Trust

Over the last year, we can see that the biggest insider purchase was by Executive Vice President of Development Hugh Clark for CA$235k worth of shares, at about CA$33.64 per share. That means that an insider was happy to buy shares at above the current price of CA$32.65. 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. To us, it’s very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 10.92k shares worth CA$399k. But insiders sold 3.40k shares worth CA$145k. In total, Allied Properties Real Estate Investment Trust insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

TSX:AP.UN Insider Trading Volume August 26th 2022

Allied Properties Real Estate Investment Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Allied Properties Real Estate Investment Trust Insiders Bought Stock Recently

It’s good to see that Allied Properties Real Estate Investment Trust insiders have made notable investments in the company’s shares. We can see that Executive Vice President of Development Hugh Clark paid CA$235k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Allied Properties Real Estate Investment Trust

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Allied Properties Real Estate Investment Trust insiders own about CA$55m worth of shares. That equates to 1.3% 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 Does This Data Suggest About Allied Properties Real Estate Investment Trust Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Allied Properties Real Estate Investment Trust shares, given these transactions (along with notable insider ownership of the company). So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. For example, Allied Properties Real Estate Investment Trust has 3 warning signs (and 2 which are potentially serious) we think you should know about.

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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