Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Charter Hall Retail REIT (ASX:CQR), it sends a favourable message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Charter Hall Retail REIT

The Last 12 Months Of Insider Transactions At Charter Hall Retail REIT

Notably, that recent purchase by Roger Davis is the biggest insider purchase of Charter Hall Retail REIT shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$3.97). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Charter Hall Retail REIT insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction! insider-trading-volume

Charter Hall Retail REIT is not the only stock that insiders are buying. For those who like to find winning investments this freelist of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Charter Hall Retail REIT Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Charter Hall Retail REIT. Independent Chairman of Charter Hall Retail Management Limited Roger Davis spent AU$180k on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Charter Hall Retail REIT

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own AU$4.3m worth of Charter Hall Retail REIT stock, about 0.2% of the company. We prefer to see high levels of insider ownership.



So What Do The Charter Hall Retail REIT Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Charter Hall Retail REIT stock. 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. For instance, we've identified 4 warning signs for Charter Hall Retail REIT (2 shouldn't be ignored) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this freelist 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.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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