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Leonie Freeman Is The Independent Director of Goodman Property Trust (NZSE:GMT) And They Just Picked Up 135% More Shares

·3-min read

Investors who take an interest in Goodman Property Trust (NZSE:GMT) should definitely note that the Independent Director, Leonie Freeman, recently paid NZ$2.27 per share to buy NZ$534k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 135%, potentially signalling some real optimism.

Check out our latest analysis for Goodman Property Trust

The Last 12 Months Of Insider Transactions At Goodman Property Trust

Notably, that recent purchase by Leonie Freeman is the biggest insider purchase of Goodman Property Trust shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being NZ$2.27). 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. In our view, the price an insider pays for shares is very important. 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.

Happily, we note that in the last year insiders paid NZ$643k for 287.43k shares. On the other hand they divested 252.92k shares, for NZ$606k. In total, Goodman Property Trust insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

Goodman Property Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Goodman Property 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. 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 Goodman Property Trust insiders own about NZ$9.1m worth of shares (which is 0.3% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Goodman Property Trust Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Goodman Property Trust stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Goodman Property Trust. To that end, you should learn about the 2 warning signs we've spotted with Goodman Property Trust (including 1 which shouldn't be ignored).

But note: Goodman Property Trust 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, but not derivative transactions.

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.

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