Anyone interested in Armada Hoffler Properties, Inc. (NYSE:AHH) should probably be aware that the President of Construction, Eric Apperson, recently divested US$220k worth of shares in the company, at an average price of US$11.02 each. The eyebrow raising move amounted to a reduction of 37% in their holding.
Armada Hoffler Properties Insider Transactions Over The Last Year
The Director A. Kirk made the biggest insider purchase in the last 12 months. That single transaction was for US$1m worth of shares at a price of US$10.50 each. That means that an insider was happy to buy shares at around the current price of US$11.09. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 insiders purchased 323.88k shares for US$3.4m. On the other hand they divested 60.00k shares, for US$684k. In the last twelve months there was more buying than selling by Armada Hoffler Properties insiders. The chart below shows insider transactions (by companies and individuals) over the last year. 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. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Armada Hoffler Properties Boast High Insider Ownership?
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 1.6% of Armada Hoffler Properties shares, worth about US$18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Armada Hoffler Properties Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Armada Hoffler Properties insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Armada Hoffler Properties. When we did our research, we found 3 warning signs for Armada Hoffler Properties (1 can't be ignored!) that we believe deserve your full attention.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
