Yahoo Finance Trade Alert: The Chairman & CEO Of American Assets Trust, Inc. (NYSE:AAT), Ernest Rady, Has Just Spent US$779k Buying A Few More Shares
American Assets Trust, Inc. (NYSE:AAT) shareholders (or potential shareholders) will be happy to see that the Chairman & CEO, Ernest Rady, recently bought a whopping US$779k worth of stock, at a price of US$35.04. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.3%.
View our latest analysis for American Assets Trust
American Assets Trust Insider Transactions Over The Last Year
Notably, that recent purchase by Chairman & CEO Ernest Rady was not the only time they bought American Assets Trust shares this year. They previously made an even bigger purchase of US$1.9m worth of shares at a price of US$35.37 per share. So it's clear an insider wanted to buy, at around the current price, which is US$36.39. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the American Assets Trust insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Ernest Rady.
Ernest Rady bought 332.47k shares over the last 12 months at an average price of US$35.90. 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!
American Assets Trust is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does American Assets 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. I reckon it's a good sign if insiders own a significant number of shares in the company. American Assets Trust insiders own 10% of the company, currently worth about US$290m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At American Assets Trust Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about American Assets Trust. One for the watchlist, at least! 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. To that end, you should learn about the 3 warning signs we've spotted with American Assets Trust (including 1 which is a bit concerning).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
