In the last year, many Alexandria Real Estate Equities, Inc. (NYSE:ARE) insiders sold a substantial stake in the company which may have sparked shareholders’ attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
Although we don’t think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Alexandria Real Estate Equities
The Last 12 Months Of Insider Transactions At Alexandria Real Estate Equities
Over the last year, we can see that the biggest insider sale was by the President & CFO, Dean Shigenaga, for US$5.4m worth of shares, at about US$200 per share. That means that an insider was selling shares at slightly below the current price (US$207). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. It is worth noting that this sale was only 18% of Dean Shigenaga’s holding.
Insiders in Alexandria Real Estate Equities didn’t buy any shares in the last year. 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!
NYSE:ARE Insider Trading Volume November 21st 2021
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Insiders at Alexandria Real Estate Equities Have Sold Stock Recently
Over the last three months, we’ve seen significant insider selling at Alexandria Real Estate Equities. In total, Co-Chief Investment Officer & Regional Market Director of San Diego Daniel Ryan dumped US$2.1m worth of shares in that time, and we didn’t record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does Alexandria Real Estate Equities Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Alexandria Real Estate Equities insiders own about US$356m worth of shares (which is 1.1% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Alexandria Real Estate Equities Insiders?
An insider sold Alexandria Real Estate Equities shares recently, but they didn’t buy any. And there weren’t any purchases to give us comfort, over the last year. On the plus side, Alexandria Real Estate Equities makes money, and is growing profits. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Alexandria Real Estate Equities. For example, Alexandria Real Estate Equities has 4 warning signs (and 2 which can’t be ignored) we think you should know about.
Of course Alexandria Real Estate Equities 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.
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.
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