Insiders at Innovative Industrial Properties, Inc. (NYSE:IIPR) sold US$6.2m worth of stock at an average price of US$204 a share over the past year, making the most of their investment. After the stock price dropped 10% last week, the company’s market value declined by US$521m, but insiders were able to mitigate their losses.
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.
View our latest analysis for Innovative Industrial Properties
The Last 12 Months Of Insider Transactions At Innovative Industrial Properties
Over the last year, we can see that the biggest insider sale was by the President, Paul Smithers, for US$1.2m worth of shares, at about US$200 per share. That means that an insider was selling shares at around the current price of US$188. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive).
In the last year Innovative Industrial Properties insiders didn’t buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
NYSE:IIPR Insider Trading Volume January 23rd 2022
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Innovative Industrial Properties
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Innovative Industrial Properties insiders own 1.9% of the company, worth about US$84m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Innovative Industrial Properties Tell Us?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. We don’t take much encouragement from the transactions by Innovative Industrial Properties insiders. But it’s good to see that insiders own shares in the company. 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. Case in point: We’ve spotted 2 warning signs for Innovative Industrial Properties you should be aware of.
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, 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.