Looking at ARMOUR Residential REIT, Inc.'s (NYSE:ARR ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.
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.
See our latest analysis for ARMOUR Residential REIT
ARMOUR Residential REIT Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Non-Executive Chairman, Daniel Staton, sold US$1.2m worth of shares at a price of US$19.46 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$20.28. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 85% of Daniel Staton's holding. Daniel Staton was the only individual insider to sell over the last year.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
ARMOUR Residential REIT Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at ARMOUR Residential REIT. In total, Non-Executive Chairman Daniel Staton sold US$1.2m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Insider Ownership Of ARMOUR Residential REIT
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that ARMOUR Residential REIT insiders own about US$5.2m worth of shares (which is 0.5% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About ARMOUR Residential REIT Insiders?
An insider hasn't bought ARMOUR Residential REIT stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we're not rushing to buy, to say the least. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 4 warning signs for ARMOUR Residential REIT (of which 2 are a bit concerning!) you should know about.
But note: ARMOUR Residential REIT may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.