Ares Commercial Real Estate Corporation (NYSE:ACRE) Insiders Increased Their Holdings
We often see insiders buying stocks in companies that are doing well over the long term. On the other hand, it wouldn’t be worth mentioning that insider selling is known to precede tough times for a company. So before you buy or sell Ares Commercial Real Estate Corporation (NYSE: ACRE) you might want to know if any insiders have bought or sold.
What is insider selling?
Most investors know that it is perfectly acceptable for company directors such as directors to buy and sell shares in the company. However, most countries require the company to disclose such transactions to the market.
Insider trading isn’t the most important thing when it comes to long-term investments. But we would also consider it foolish to ignore insider trading altogether. As Peter Lynch said, “Insiders could sell their stocks for a number of reasons, but they are buying them for only one thing: they think the price will go up”.
Check out our latest analysis for Ares Commercial Real Estate
The last 12 months of insider trading at Ares Commercial Real Estate
Insider James Henderson made the biggest insider sale in the past 12 months. That single transaction involved shares valued at $ 435,000 priced at $ 17.41 each. While we typically don’t like to see inside sales, it is rather worrying that the sales are happening at a lower price. It’s comforting that this sale was made at a price well above its current share price of $ 12.42. It is therefore difficult to draw a strong conclusion from this. James Henderson was the only insider to sell stocks in the past twelve months.
Fortunately, we find that insiders paid $ 616,000 for 58.00,000 shares last year. However, insiders sold 25.00,000 shares valued at $ 435,000. In the past twelve months, Ares Commercial Real Estate insiders have bought more than they sold. The following table shows the insider transactions (by companies and individuals) over the past year. If you click on the chart, you will see all of the individual transactions, including the stock price, the individual, and the date!
NYSE: ACRE Insider Trading Volume February 10, 2021
There are many other companies that insiders buy stocks from. You probably do Not want to miss that free List of growing companies that insider buy.
Ares Commercial Real Estate insider ownership
For a common stockholder, it is worth checking how many shares are held by insiders. The higher the proportion of insiders, the more likely it is that insiders will receive incentives to build the company over the long term. Insiders own 4.8% of the shares in Ares Commercial Real Estate, valued at approximately $ 20 million. While this is a strong but not outstanding level of insider ownership, it is enough to indicate some consistency between management and smaller shareholders.
What do Ares Commercial Real Estate’s insider deals indicate?
The fact that there haven’t been any insider deals with Ares Commercial Real Estate recently certainly doesn’t bother us. But insiders have shown more appetite for the stock over the past year. Insiders are involved in Ares Commercial Real Estate and we are not concerned about their deals. While it is helpful to know what insiders are doing to buy or sell, it is also helpful to know the risks a particular company is facing. When we did our research, we found out 3 warning signs for Ares Commercial Real Estate (2 are a little uncomfortable!) We believe we deserve your full attention.
Naturally, You could find a fantastic investment looking elsewhere. So take a look at it free List of interesting companies.
For the purposes of this article, insiders are persons who report their transactions to the competent supervisory authority. We currently consider open market transactions and private sales, but not derivative transactions.
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