It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Gladstone Commercial Corporation’s (NASDAQ:GOOD) case, it’s fantastic news for 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.
View our latest analysis for Gladstone Commercial
Gladstone Commercial Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CFO & Assistant Treasurer Gary Gerson bought US$80k worth of shares at a price of US$22.96 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$20.74). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
In the last twelve months insiders purchased 6.70k shares for US$152k. On the other hand they divested 2.27k shares, for US$51k. In the last twelve months there was more buying than selling by Gladstone Commercial insiders. You can see a visual depiction 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!
Gladstone Commercial is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Gladstone Commercial Insiders Bought Stock Recently
We saw some Gladstone Commercial insider buying shares in the last three months. Co-President Robert Cutlip shelled out US$21k for shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership of Gladstone Commercial
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.7% of Gladstone Commercial shares, worth about US$13m. 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 Gladstone Commercial Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn’t worth writing home about. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Gladstone Commercial and their transactions don’t cause us concern. 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. In terms of investment risks, we’ve identified 2 warning signs with Gladstone Commercial and understanding them should be part of your investment process.
Of course Gladstone Commercial 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.
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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.
