Did Dream Office Real Estate Investment Trust (TSE:D.UN) Insiders Buy Up More Shares?
We often see insiders buying stocks in companies that are doing well over the long term. Unfortunately, there are also plenty of examples of stock prices falling sharply after insiders sell stocks. So we’ll look to see if insiders bought or sold stocks of Dream Office Real Estate Investment Trust (TSE: D.UN).
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, rules apply to insider trading and certain disclosures are required.
We do not believe that shareholders should simply pursue insider deals. However, logic dictates that you should be careful about whether insiders are buying or selling stocks. For example, a Harvard University study found that “insider buying generates unusual returns of more than 6% per year.”
Check out our latest analysis for Dream Office Real Estate Investment Trust
Dream Office Real Estate Investment Trust insider deals last year
Last year we saw that the largest insider purchase by Chairman and CEO Michael Cooper was for CA $ 897,000 stock at approximately CA $ 17.95 per share. This means that an insider found the current price of CA $ 19.83 per share tempting. That said, they’ve been optimistic about the company in the past, although they may have changed their minds. While we always love to see inside buying, it makes less sense if the purchases were made at much lower prices, as the opportunity they saw may have passed. Fortunately, the insiders of the Dream Office Real Estate Investment Trust decided to buy stocks at near current prices.
For the past twelve months, insiders at the Dream Office Real Estate Investment Trust have bought, but not sold, stocks. The following table shows the insider transactions (by companies and individuals) over the past year. If you want to know exactly who sold how much and when, just click on the graphic below!
TSX: D.UN Insider Trading Volume December 28, 2020
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.
For a common stockholder, it is worth checking how many shares are held by insiders. We usually like to see a pretty high level of inside ownership. Dream Office Real Estate Investment Trust insiders own shares valued at approximately CA $ 14 million. That corresponds to 1.2% of the company. We have certainly seen higher levels of insider ownership elsewhere, but these levels are sufficient to suggest an alignment between insiders and the other shareholders.
What do insider transactions of the Dream Office Real Estate Investment Trust indicate?
The fact that there haven’t been any insider deals by the Dream Office Real Estate Investment Trust recently certainly doesn’t bother us. But insiders have shown more appetite for the stock over the past year. Insiders are involved in Dream Office Real Estate Investment Trust and we are not concerned about their deals. We’d like to know what’s wrong with the insider’s property and transactions, but we should also consider the risks a stock is exposed to before making any investment decision. When we did our research, we found out 2 warning signs for Dream Office Real Estate Investment Trust (1 makes us a little uncomfortable!) That we think we deserve your full attention.
But note: The Dream Office Real Estate Investment Trust may not be the best stock to buy. So take a look at it free List of interesting companies with high ROE and low debt.
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.
If you want to trade with Dream Office Real Estate Investment Trust, open an account with the lowest cost * platform trusted by the professionals, Interactive Brokers. Your clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds from a single integrated account worldwide.
This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
* Interactive brokers have been rated as Lowest Cost Brokers by StockBrokers.com
Do you have any feedback on this article? Concerned about the content? Get in touch directly with us. Alternatively, you can also send an email to the editorial team (at) simplywallst.com.