Multiple insiders bought Flagship Communities Real Estate Investment Trust (TSE:MHC.UN) stock earlier this year, a positive sign for shareholders
Generally, when a single insider buys stock, it’s usually not a big deal. However, when several insiders are buying, like in the case of Flagship Communities Real Estate Investment Trust (TSE:MHC.UN), it sends a favorable message to the company’s 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.
View our latest analysis for Flagship Communities Real Estate Investment Trust
Flagship Communities Real Estate Investment Trust Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Chair of the Board of Trustees Peter C. Bynoe bought CA$188k worth of shares at a price of CA$23.47 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being CA$21.80). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Flagship Communities Real Estate Investment Trust insiders may have bought shares in the last year, but they didn’t sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
insider trading volume
Flagship Communities 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.
Flagship Communities Real Estate Investment Trust Insiders Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at Flagship Communities Real Estate Investment Trust. Insiders purchased CA$60k worth of shares in that period. It’s good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Story continues
inside ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. From what we can see in our data, insiders own only about CA$1.2m worth of Flagship Communities Real Estate Investment Trust shares. This level of insider ownership is notably low, and not very encouraging.
So What Does This Data Suggest About Flagship Communities Real Estate Investment Trust Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. We would certainly prefer to see higher levels of insider ownership but analysis of the insider transactions suggests that Flagship Communities Real Estate Investment Trust insiders are expecting a bright future. 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. To that end, you should learn about the 4 warning signs we’ve spotted with Flagship Communities Real Estate Investment Trust (including 1 which makes us a bit uncomfortable).
But note: Flagship Communities Real Estate Investment Trust 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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