Yahoo Finance Favourable Signals For SIR Royalty Income Fund: Numerous Insiders Acquired Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in SIR Royalty Income Fund's (TSE:SRV.UN) 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.
Check out our latest analysis for SIR Royalty Income Fund
SIR Royalty Income Fund Insider Transactions Over The Last Year
Notably, that recent purchase by Lembit Janes is the biggest insider purchase of SIR Royalty Income Fund shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is CA$12.80. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for SIR Royalty Income Fund share holders is that insiders were buying at near the current price.
While SIR Royalty Income Fund insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
SIR Royalty Income Fund is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At SIR Royalty Income Fund Have Bought Stock Recently
Over the last quarter, SIR Royalty Income Fund insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CA$158k worth of shares. This makes one think the business has some good points.
Does SIR Royalty Income Fund Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 11% of SIR Royalty Income Fund shares, worth about CA$14m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The SIR Royalty Income Fund Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest SIR Royalty Income Fund insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of 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 example - SIR Royalty Income Fund has 2 warning signs we think you should be aware of.
Of course SIR Royalty Income Fund 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
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