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Insiders Who Placed Huge Bets on Link Real Estate Investment Trust (HKG:823) Earlier This Year Would Be Disappointed With the 6.1% Drop

Simply Wall St ·  Oct 14, 2022 22:20

Insiders who bought HK$9.0m worth of Link Real Estate Investment Trust's (HKG:823) stock at an average buy price of HK$71.76 over the last year may be disappointed by the recent 6.1% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth HK$6.5m which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Link Real Estate Investment Trust

Link Real Estate Investment Trust Insider Transactions Over The Last Year

The CEO & Executive Director of Link Asset Management Limited Kwok Lung Hongchoy made the biggest insider purchase in the last 12 months. That single transaction was for HK$3.6m worth of shares at a price of HK$72.46 each. That means that even when the share price was higher than HK$51.50 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Link Real Estate Investment Trust insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volumeSEHK:823 Insider Trading Volume October 15th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Link Real Estate Investment Trust

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Link Real Estate Investment Trust insiders own about HK$92m worth of shares. That equates to 0.08% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Link Real Estate Investment Trust Insider Transactions Indicate?

The fact that there have been no Link Real Estate Investment Trust insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Link Real Estate Investment Trust and their transactions don't cause us concern. Of course, the future is what matters most. So if you are interested in Link Real Estate Investment Trust, you should check out this free report on analyst forecasts for the company.

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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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