In This Article:
Investors who take an interest in Real Estate Investors Plc (LON:RLE) should definitely note that the CEO & Director, Paramjit Bassi, recently paid UK£0.29 per share to buy UK£145k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 2.9%.
Real Estate Investors Insider Transactions Over The Last Year
Notably, that recent purchase by Paramjit Bassi is the biggest insider purchase of Real Estate Investors shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is UK£0.30. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Real Estate Investors share holders is that insiders were buying at near the current price.
In the last twelve months Real Estate Investors insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Real Estate Investors
Real Estate Investors is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Our data indicates that Real Estate Investors insiders own about UK£4.2m worth of shares (which is 8.0% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Real Estate Investors Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. 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 Real Estate Investors stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Real Estate Investors. To that end, you should learn about the 3 warning signs we've spotted with Real Estate Investors (including 1 which can't be ignored).