Have Heriot REIT Insiders Been Selling Stock?

We wouldn't blame Heriot REIT Limited (JSE:HET) shareholders if they were a little worried about the fact that Richard Herring, the CEO & Executive Director recently netted about R67m selling shares at an average price of R20.00. That's a big disposal, and it decreased their holding size by 24%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Heriot REIT

In fact, the recent sale by Richard Herring was the biggest sale of Heriot 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 below the current price of R22.25, 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 24% of Richard Herring's holding.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Heriot REIT

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Does Heriot REIT Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Heriot REIT insiders own about R5.2b worth of shares (which is 73% 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 Heriot REIT Tell Us?

An insider sold Heriot REIT shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Heriot REIT makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Heriot REIT. For instance, we've identified 3 warning signs for Heriot REIT (1 is concerning) you should be aware of.

But note: Heriot REIT may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.