Insiders who placed huge bets on Charter Hall Long WALE REIT (ASX:CLW) earlier this year would be disappointed with the 3.1% drop

The recent price decline of 3.1% in Charter Hall Long WALE REITs (ASX:CLW) stock may have disappointed insiders who bought AU$970k worth of shares at an average price of AU$4.84 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$867k which is not ideal.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Charter Hall Long WALE REIT

The Last 12 Months Of Insider Transactions At Charter Hall Long WALE REIT

The MD, Group CEO & Executive Director of Charter Hall WALE Limited David Harrison made the biggest insider purchase in the last 12 months. That single transaction was for AU$920k worth of shares at a price of AU$4.84 each. That means that even when the share price was higher than AU$4.33 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Charter Hall Long WALE REIT insiders bought shares during the last year, they didn’t sell. You can see a visual description of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

ASX:CLW Insider Trading Volume July 1st 2022

There are plenty of other companies that have insiders buying up shares. you probably do not because to miss this free list of growing companies that insiders are buying.

Does Charter Hall Long WALE REIT Boast High Insider Ownership?

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 incentivized to build the company for the long term. From looking at our data, insiders own AU$5.3m worth of Charter Hall Long WALE REIT stock, about 0.2% of the company. We consider this fairly low insider ownership.

What Might The Insider Transactions At Charter Hall Long WALE REIT Tell Us?

There haven’t been any insider transactions in the last three months — that doesn’t mean much. But insiders have shown more of an appetite for the stock, over the last year. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Charter Hall Long WALE REIT insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Our analysis shows 6 warning signs for Charter Hall Long WALE REIT (2 don’t sit too well with us!) and we strongly recommend you look at these before investing.

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.

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.

Leave a Comment

Your email address will not be published.