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 Nexus Industrial REIT (TSE:NXR.UN), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Nexus Industrial REIT
Nexus Industrial REIT Insider Transactions Over The Last Year
While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.
While Nexus Industrial REIT insiders bought shares during the last year, they didn't sell. The average buy price was around CA$10.57. I'd consider this a positive as it suggests insiders see value at around the current price, which is CA$8.84. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Nexus Industrial REIT Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Nexus Industrial REIT. CEO & Trustee Kelly Hanczyk shelled out CA$30k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
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. Based on our data, Nexus Industrial REIT insiders have about 0.8% of the stock, worth approximately CA$5.4m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.
So What Do The Nexus Industrial REIT Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Nexus Industrial REIT insiders are doubting the company. 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. When we did our research, we found 4 warning signs for Nexus Industrial REIT (2 are a bit concerning!) that we believe deserve your full attention.