Even if it's not a huge purchase, we think it was good to see that Enrique Silva, the Independent Director of Anywhere Real Estate Inc. (NYSE:HOUS) recently shelled out US$81k to buy stock, at US$5.42 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 21%.
View our latest analysis for Anywhere Real Estate
Anywhere Real Estate Insider Transactions Over The Last Year
In fact, the recent purchase by Enrique Silva was the biggest purchase of Anywhere Real Estate shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$4.97). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Anywhere Real Estate insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Anywhere Real Estate is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Anywhere Real Estate insiders own about US$15m worth of shares. That equates to 2.7% 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 Anywhere Real Estate Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Anywhere Real Estate shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 2 warning signs for Anywhere Real Estate (1 is potentially serious) you should be aware of.
Of course Anywhere Real Estate may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.
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