We’d be surprised if Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) Shareholders have not noticed that independent director Kerry Campbell recently sold $171,000 of shares at $2.23 per share. In particular, we note that the sale represented a 96% reduction in their position size, which doesn’t exactly inspire confidence.
Wheeler Real Estate Investment Trust insider transactions over the past year
In fact, the recent sale of Kerry Campbell was the largest sale of Wheeler Real Estate Investment Trust stock by an insider in the past 12 months, according to our records. We don’t generally like insider selling, but the lower the selling price, the more concerned we are. The silver lining is that this sell-off occurred above the last price ($1.92). It is therefore difficult to draw clear conclusions from this.
We’re pleased to note that insiders paid $97,000 for 618,16,000 shares last year. But insiders sold 107.65,000 shares worth $239,000. All in all, insiders sold more shares of Wheeler Real Estate Investment Trust than they bought in the last year. The average selling price was around $2.22. It’s certainly not nice to see insiders selling shares in the company. However, we note that the sale averaged well above the recently traded price of $1.92. Below is a visual representation of insider transactions (both corporate and individual) over the past 12 months. If you click on the chart you will see all the individual transactions including the stock price, the individual and the date!
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Does Wheeler Real Estate Investment Trust have high insider ownership?
Another way to test the consistency between a company’s executives and other shareholders is to look at how many shares they own. Typically, the higher the insider ownership, the more likely it is that insiders will be incentivized to build the company over the long term. It appears that Wheeler Real Estate Investment Trust insiders own 37% of the company, valued at about $7.2 million. This level of insider ownership is good, but close to being particularly outstanding. It certainly suggests a reasonable level of alignment.
What Could the Insider Transactions at Wheeler Real Estate Investment Trust Tell Us?
Insider selling has outweighed insider buying at Wheeler Real Estate Investment Trust over the past three months. Despite some insider buying, the longer-term picture doesn’t make us much more positive. Insider involvement isn’t particularly high, so this analysis makes us cautious about the company. So we would only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it’s also worth understanding the risks this company faces. Every business has risks and we have recognized them 2 warning signs for Wheeler Real Estate Investment Trust you should know.
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For the purposes of this article, insiders are individuals who report their transactions to the relevant regulator. We currently account for open market transactions and private dispositions, but not derivatives transactions.
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