Despite the fact that Ares Commercial Real Estate Corporation's (NYSE:ACRE) value has dropped 14% in the last week insiders who sold US$256k worth of stock in the past 12 months have had less success. The average selling price of US$10.33 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.
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.
Ares Commercial Real Estate Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the CEO & Director, Bryan Donohoe, for US$195k worth of shares, at about US$10.32 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$6.75). So it may not shed much light on insider confidence at current levels.
Ares Commercial Real Estate insiders didn't buy any shares over the last year. 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!
I will like Ares Commercial Real Estate better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does Ares Commercial Real Estate Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 3.8% of Ares Commercial Real Estate shares, worth about US$15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Ares Commercial Real Estate Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Ares Commercial Real Estate shares in the last quarter. Our analysis of Ares Commercial Real Estate insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. 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. At Simply Wall St, we found 2 warning signs for Ares Commercial Real Estate that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com