Even if it's not a huge purchase, we think it was good to see that Howard Brenchley, the Independent Director of APN Funds Management Limited of APN Convenience Retail REIT (ASX:AQR) recently shelled out AU$90k to buy stock, at AU$3.61 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 39%.
Check out our latest analysis for APN Convenience Retail REIT
The Last 12 Months Of Insider Transactions At APN Convenience Retail REIT
Notably, that recent purchase by Howard Brenchley is the biggest insider purchase of APN Convenience Retail REIT shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$3.56). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While APN Convenience Retail REIT insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
APN Convenience Retail REIT is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of APN Convenience Retail REIT
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that APN Convenience Retail REIT insiders own 4.2% of the company, worth about AU$18m. 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 Does This Data Suggest About APN Convenience Retail REIT Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest APN Convenience Retail REIT insiders are well aligned, and that they may think the share price is too low. 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. In terms of investment risks, we've identified 3 warning signs with APN Convenience Retail REIT and understanding them should be part of your investment process.