Anyone interested in Apple Hospitality REIT, Inc. (NYSE:APLE) should probably be aware that the Executive Director, Kristian Gathright, recently divested US$153k worth of shares in the company, at an average price of US$15.29 each. On the bright side, that sale was only 1.0% of their holding, so we doubt it’s very meaningful, on its own.
Check out our latest analysis for Apple Hospitality REIT
The Last 12 Months Of Insider Transactions At Apple Hospitality REIT
In fact, the recent sale by Kristian Gathright was the biggest sale of Apple Hospitality REIT shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$15.35, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. We note that the biggest single sale was only 1.0%of Kristian Gathright’s holding.
Happily, we note that in the last year insiders paid US$192k for 13.87k shares. But insiders sold 11.25k shares worth US$169k. Overall, Apple Hospitality REIT insiders were net buyers during the last year. 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!
Apple Hospitality REIT 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.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Apple Hospitality REIT insiders own about US$231m worth of shares (which is 6.6% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Apple Hospitality REIT Tell Us?
Unfortunately, there has been more insider selling of Apple Hospitality REIT stock, than buying, in the last three months. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So we’re happy to look past recent trading. 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. To that end, you should learn about the 3 warning signs we’ve spotted with Apple Hospitality REIT (including 1 which is a bit unpleasant).
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.
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