As a general rule, when a single insider buys stocks, it’s usually no big deal. However, when multiple insiders buy, as in the case of Real Estate Investment Trust Link (HKG:823), this sends a positive message to the shareholders of the company.
While we would never suggest that investors base their decisions solely on what a company’s directors have done, we would consider it foolish to completely ignore insider trading.
If you’re not interested in researching 823’s insider trading, we have a free list of interesting investment ideas to potentially inspire your next investment!
The last 12 months of insider trading at Link Real Estate Investment Trust
Over the past year, we can see that the biggest insider buy was made by the CEO and Executive Director of Link Asset Management Limited, Kwok Lung Hongchoy, for HK$3.6 million worth of shares, or approximately HK$72.46 per share. Clearly, an insider wanted to buy, even at a price higher than the current stock price (ie HK$62.30). Their perspective may have changed since then, but it at least shows that they were feeling optimistic at the time. In our view, the price an insider pays for a stock is very important. Generally speaking, it comes to our attention when insiders have bought stocks at higher prices than they are now, as it suggests that they thought the stock was worth buying, even at a higher price.
Over the past twelve months, Link Real Estate Investment Trust insiders have bought shares, but not sold. The chart below shows insider trading (by companies and individuals) over the past year. By clicking on the graph below, you will be able to see the precise detail of each insider trade!
Link Real Estate Investment Trust isn’t the only stock insiders are buying. So take a look at this free list of growing companies with insider buying.
Insider Ownership of Link Real Estate Investment Trust
Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. I think it’s a good sign if insiders have a significant number of shares in the company. Insiders own 0.08% of the shares of Link Real Estate Investment Trust, worth approximately HK$111 million. We have certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.
So what does this data suggest about Link Real Estate Investment Trust insiders?
There have been no insider trades in the last three months – that’s not saying much. On a more positive note, last year’s transactions are encouraging. With strong insider ownership and encouraging transactions, it seems Link Real Estate Investment Trust insiders think the company has some merit. Sure, the future is what matters most. So if you are interested in Link Real Estate Investment Trust, you should check out this free analyst forecast report for the company.
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
Calculation of discounted cash flows for each share
Simply Wall St performs a detailed calculation of discounted cash flow every 6 hours for every stock in the market, so if you want to find the intrinsic value of any company, just search here. It’s free.