CT Real Estate Investment Trust (TSE:CRT.UN) insiders got a good deal: Sold stock currently worth CA$15.67 at CA$17.19 over the past year

Last week, CT Real Estate Investment Trust’s (TSE:CRT.UN) stock jumped 4.6%, but insiders who sold CA$299k worth of stock in over the past year are likely to be in a better position. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of CA$17.19, which is higher than the current price, may have been the best decision.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out the opportunities and risks within the CA REITs industry.

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

The insider, David Court, made the biggest insider sale in the last 12 months. That single transaction was for CA$245k worth of shares at a price of CA$17.25 each. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (CA$15.67). So it may not shed much light on insider confidence at current levels. David Court was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 16.27k shares worth CA$267k. But insiders sold 17.40k shares worth CA$299k. David Court ditched 17.40k shares over the year. The average price per share was CA$17.19. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

TSX:CRT.UN Insider Trading Volume October 30th 2022

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CT Real Estate Investment Trust Insiders Bought Stock Recently

We saw some CT Real Estate Investment Trust insiders buying shares in the last three months. President & CEO Kevin Salsberg shelled out CA$54k for shares at that time. It’s great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does CT Real Estate Investment Trust Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own CA$2.2m worth of CT Real Estate Investment Trust stock, about 0.06% of the company. I generally like to see higher levels of ownership.

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

It’s certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. The transactions over the last year don’t give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive one. 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. Be aware that CT Real Estate Investment Trust is showing 3 warning signs in our investment analysisand 1 of those is concerning…

Of course CT Real Estate Investment Trust may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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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.