Over the last year, a good number of insiders have significantly increased their holdings in Agree Realty Corporation (NYSE:ADC). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Agree Realty
Agree Realty Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director John Rakolta bought US$785k worth of shares at a price of US$71.38 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$69.81). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Agree Realty insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Agree Realty is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Agree Realty Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Agree Realty. Independent Director John Rakolta spent US$785k on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.
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. Agree Realty insiders own 1.7% of the company, currently worth about US$104m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Agree Realty Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Agree Realty. That's what I like to see! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 2 warning signs for Agree Realty (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing.
Of course Agree Realty may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.