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Schroder European Real Estate Investment Trust Plc (LON:SERE) Insiders Increased Their Holdings

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Schroder European Real Estate Investment Trust Plc (LON:SERE), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.

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See our latest analysis for Schroder European Real Estate Investment Trust

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

While no particular insider transaction stood out, we can still look at the overall trading.

In the last twelve months Schroder European Real Estate Investment Trust insiders were buying shares, but not selling. You can see the insider transactions (by 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!

LSE:SERE Recent Insider Trading May 8th 2020
LSE:SERE Recent Insider Trading May 8th 2020

Schroder European Real Estate Investment Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Schroder European Real Estate Investment Trust Insiders Bought Stock Recently

There was some insider buying at Schroder European Real Estate Investment Trust over the last quarter. Insiders shelled out UK£17k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.

Does Schroder European 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. 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 information indicates that Schroder European Real Estate Investment Trust insiders own about UK£39k worth of shares. This level of insider ownership is notably low, and not very encouraging.

So What Does This Data Suggest About Schroder European Real Estate Investment Trust Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Schroder European Real Estate Investment Trust insiders bought more shares in the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 4 warning signs for Schroder European Real Estate Investment Trust (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.

But note: Schroder European Real Estate Investment Trust may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.