American Assets Trust, Inc. (NYSE:AAT) shareholders (or potential shareholders) will be happy to see that Chairman and CEO Ernest Rady recently purchased $1.0 million worth of stock, priced at $29.73. There is no denying that a purchase of this magnitude suggests a belief in a better future, although we note that proportionally it only increased their stake by 0.5%.
See our latest analysis for American Assets Trust
The last 12 months of insider trading at American Assets Trust
In fact, the recent purchase by Ernest Rady was the largest purchase of American Assets Trust stock by an insider in the past twelve months, according to our records. Clearly, an insider wanted to buy, even at a price higher than the current stock price (ie US$29.28). Their perspective may have changed since then, but it at least shows that they were feeling optimistic at the time. We always take careful note of the price paid by insiders when buying stocks. Generally speaking, it catches our attention when an insider has bought stocks at prices higher than the current price, as it suggests that they thought the stock was worth buying, even at a higher price. The only individual insider to buy in the past year was Ernest Rady.
Ernest Rady has purchased 268,39,000 shares over the past 12 months at an average price of $35.65. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much and when, just click on the chart below!
American Assets Trust isn’t the only stock insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.
Does American Assets Trust boast of high insider ownership?
For an ordinary shareholder, it is worth checking how many shares are held by company insiders. We generally like to see fairly high levels of insider ownership. It’s great to see that American Assets Trust insiders own 11% of the company, worth around $240 million. I like to see this level of insider ownership because it increases the chances that management is thinking about the best interests of shareholders.
What could insider trading at American Assets Trust tell us?
The recent insider buying is encouraging. And an analysis of last year’s transactions also gives us confidence. Once you factor in the strong insider ownership, it certainly seems like insiders are positive about American Assets Trust. One for the watchlist, at least! So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. To do this, you need to find out about the 2 warning signs we spotted with American Assets Trust (including 1 that should not be overlooked).
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.