Potential Real Estate Investors plc (LON:RLE) shareholders may wish to note that the CEO & Director, Paramjit Paul Bassi, recently bought UK£280k worth of stock, paying UK£0.28 for each share. Although the purchase only increased their holding by 9.1%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Real Estate Investors
In fact, the recent purchase by Paramjit Paul Bassi was the biggest purchase of Real Estate Investors shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is UK£0.29. 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. Happily, the Real Estate Investors insiders decided to buy shares at close to current prices.
Real Estate Investors insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Does Real Estate Investors Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Real Estate Investors insiders own about UK£4.1m worth of shares (which is 7.7% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Real Estate Investors Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Real Estate Investors 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. When we did our research, we found 4 warning signs for Real Estate Investors (2 are a bit unpleasant!) that we believe deserve your full attention.
Of course Real Estate Investors 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.
This article by Simply Wall St is general in nature. 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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