Realty Income Corporation (NYSE: O) insiders miss last week’s 5.5% gain after selling shares in the past year

Although it has been a great week for Real estate income corporation (NYSE: O) after stocks gained 5.5%, not so much for insiders who sold stocks in the past year. The value of their investment would have been higher if they had waited to sell their shares.

While we never suggest that investors base their decisions solely on what the directors of a company have done, logic dictates that you pay attention to whether insiders are buying or selling stocks.

Insider trading in real estate income in the past year

Independent director Ronald Merriman had the biggest insider sale in the past 12 months. This single transaction involved shares valued at US $ 280,000 at a price of US $ 70.05 each. This means that even when the share price was slightly lower than the current price of US $ 70.94, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that he or she considered that lower price to be fair. This makes us wonder what they think of the recent (higher) valuation. However, while insider selling can be daunting at times, this is only a weak signal. It should be noted that this sale only represented 15% of Ronald Merriman’s stake.

In total, Realty Income insiders have sold more than they have bought over the past year. You can see insider trading (by companies and individuals) over the past year represented in the graph below. If you want to know exactly who sold, for how much and when, just click on the graph below!

NYSE: O Insider Trading Volume December 28, 2021

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Insider ownership

For an ordinary shareholder, it is worth checking out how many shares are owned by company insiders. Strong insider ownership often makes company management more concerned with the interests of shareholders. Realty Income insiders own approximately $ 48 million in shares. This equates to 0.1% of the business. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.

What might insider trading at Realty Income tell us?

It doesn’t really mean much that no insider traded Realty Income shares in the past quarter. We do not take a lot of encouragement from transactions by Insiders of Realty Income. But we love that the insiders own a good chunk of the business. So these insider trading can help us build a thesis on the stock, but it’s also worth knowing the risks this business faces. To help you, we have discovered 2 warning signs which you should browse to get a better picture of real estate income.

Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.

For the purposes of this article, insiders are those persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.

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