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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Saul Centers, Inc. (NYSE:BFS).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.
View our latest analysis for Saul Centers
Saul Centers Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President Bernard Saul bought US$572k worth of shares at a price of US$28.71 per share. That means that an insider was happy to buy shares at around the current price of US$30.28. 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. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months Saul Centers 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Saul Centers is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Are Saul Centers Insiders Buying Or Selling?
We've only seen a tiny insider purchase valued at US$1.4k, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.
Insider Ownership of Saul Centers
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.0% of Saul Centers shares, worth about US$19m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.