Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Presidio Property Trust, Inc. (NASDAQ:SQFT), it sends a favourable message to the company’s shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Presidio Property Trust
Presidio Property Trust Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Vito Garfi bought US$304k worth of shares at a price of US$1.22 per share. That means that even when the share price was higher than US$0.60 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it’s very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Presidio Property Trust insiders bought shares during the last year, they didn’t sell. The average buy price was around US$0.90. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Presidio Property Trust is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Presidio Property Trust Have Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at Presidio Property Trust. Chairman Jack Heilbron shelled out US$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.
Insider Ownership Of Presidio Property Trust
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Presidio Property Trust insiders own 23% of the company, worth about US$1.7m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Presidio Property Trust Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Presidio Property Trust and their transactions don’t cause us concern. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Presidio Property Trust. Case in point: We’ve spotted 2 warning signs for Presidio Property Trust you should be aware of, and 1 of these is significant.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.