- Oops!Something went wrong.Please try again later.
Even if it's not a huge purchase, we think it was good to see that Peter Done, the Independent Non-Executive Director of Centuria Property Funds Limited of Centuria Office REIT (ASX:COF) recently shelled out AU$79k to buy stock, at AU$2.50 per share. That purchase might not be huge but it did increase their holding by 16%.
The Last 12 Months Of Insider Transactions At Centuria Office REIT
Notably, that recent purchase by Independent Non-Executive Director of Centuria Property Funds Limited Peter Done was not the only time they bought Centuria Office REIT shares this year. Earlier in the year, they paid AU$1.99 per share in a AU$100k purchase. Even though the purchase was made at a significantly lower price than the recent price (AU$2.50), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months Centuria Office REIT insiders were buying shares, but not selling. They paid about AU$2.23 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Centuria Office REIT
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own AU$2.0m worth of Centuria Office REIT stock, about 0.1% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.
So What Do The Centuria Office REIT Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Centuria Office REIT stock. 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 Centuria Office REIT is showing 3 warning signs in our investment analysis, and 1 of those is concerning...
Of course Centuria Office REIT 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. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.