The recent price decline of 5.0% in Piedmont Office Realty Trust, Inc.’s (NYSE:PDM) stock may have disappointed insiders who bought US$272k worth of shares at an average price of US$15.72 in the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$222k, which is not great.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Piedmont Office Realty Trust
Piedmont Office Realty Trust Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Chief Accounting Officer & Senior VP, Laura Moon, for US$123k worth of shares, at about US$16.09 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It’s of some comfort that this sale was conducted at a price well above the current share price, which is US$12.85. So it may not tell us anything about how insiders feel about the current share price. Laura Moon was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 17.30k shares for US$272k. But they sold 7.63k shares for US$123k. In the last twelve months there was more buying than selling by Piedmont Office Realty Trust insiders. 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!
NYSE:PDM Insider Trading Volume August 5th 2022
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Piedmont Office Realty Trust Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Piedmont Office Realty Trust. In total, insiders bought US$54k worth of shares in that time, and we didn’t record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Does Piedmont Office Realty Trust Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Piedmont Office Realty Trust insiders own about US$19m worth of shares. That equates to 1.2% of the company. 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 Piedmont Office Realty Trust Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Piedmont Office Realty Trust insiders are well aligned, and that they may think the share price is too low. 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’ve found that Piedmont Office Realty Trust has 4 warning signs (2 are significant!) that deserve your attention before going any further with your analysis.
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, 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.