insider trading volume

Bullish insiders at SmartCentres Real Estate Investment Trust (TSE:SRU.UN) loaded up on CA$1.2m of stock earlier this year

Beth McCandry

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Smart Centers Real Estate Investment Trust’s (TSE:SRU.UN) instance, it’s good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Our analysis indicates that SRU.UN is potentially undervalued!

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

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman & CEO Mitchell Goldhar bought CA$642k worth of shares at a price of CA$25.58 per share. That implies that an insider found the current price of CA$25.71 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. The good news for SmartCentres Real Estate Investment Trust share holders is that insiders were buying at near the current price.

While SmartCentres Real Estate Investment Trust insiders bought shares during the last year, they didn’t sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

TSX:SRU.UN Insider Trading Volume October 11th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

SmartCentres Real Estate Investment Trust Insiders Bought Stock Recently

Over the last three months, we’ve seen significant insider buying at SmartCentres Real Estate Investment Trust. Overall, two insiders shelled out CA$1.2m for shares in the company — and none sold. This is a positive in our book as it implies some confidence.

Insider Ownership Of SmartCentres Real Estate Investment Trust

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It’s great to see that SmartCentres Real Estate Investment Trust insiders own 8.9% of the company, worth about CA$393m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The SmartCentres Real Estate Investment Trust Insider Transactions Indicate?

It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about SmartCentres Real Estate Investment Trust. Looks promising! 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. Every company has risks, and we’ve spotted 2 warning signs for SmartCentres Real Estate Investment Trust (of which 1 shouldn’t be ignored!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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