When a single insider buys stocks, it’s usually not a big deal. However, when several experts buy stocks, as in European Investment Funds in Residential Real Estate (TSE:ERE.UN) instance, is good news for shareholders.

While we would never suggest that investors should base their decisions solely on what a company’s directors have been doing, we would consider it foolish to ignore internal transactions entirely.

Check out our latest analysis for the European Residential Real Estate Investment Trust

The last 12 months of internal transactions in European Residential Real Estate Investment Trust

Over the past year, we can see that the largest insider purchase was made by insider Stephen Co for CA$201k worth of shares, at around CA$4.67 per share. That means an insider was happy to buy shares above the current price of CA$3.30. They may very well regret the purchase, but they are more likely to be optimistic about the company. From our point of view, the price an insider pays for the shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares above current prices, because that suggests they saw the stock as a good value, even at a higher price.

While members of the European Residential Real Estate Investment Trust have bought shares over the past year, they have not sold them. You can see a visual representation of internal transactions (by companies and individuals) for the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, the individual, and the date.

amount of inside information

amount of inside information

European Residential Real Estate Investment Trust isn’t the only stock the experts buy. so take a look at this free list of growing companies with internal purchases.

Does the European Residential Real Estate Investment Trust have a High Private Property?

Many investors like to check how much of a company is owned by insiders. Typically, the greater the insider ownership, the more likely it is that insiders will be incentivized to build the company for the long term. Looking at our data, experts own CA$5.5 million worth of European Residential Real Estate Investment Trust shares, roughly 0.7% of the company. We consider this internal property to be quite low.

So what does this data suggest about members of European residential real estate investment trusts?

There have been no internal transactions in the last three months, that doesn’t mean much. But pundits have shown more appetite for stocks over the past year. While we are not concerned with internal transactions, we would feel more comfortable if you had more shares in the European Residential Real Estate Investment Trust. So these insider transactions can help us build a thesis on the stock, but it’s also worth knowing the risks this company faces. For example, the European Residential Real Estate Investment Trust has 4 warning signs (and 2 that don’t suit us very well) that we think you should know about.

Of course European Residential Real Estate Investment Trust may not be the best stock to buy. So you might want to check this out free high quality business collection.

For the purposes of this article, insiders are those individuals who report their operations to the corresponding regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This Simply Wall St article is general in nature. We provide feedback based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell any stock, and it does not take into account your goals or financial situation. Our goal is to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative material. Simply Wall St does not have a position in any of the mentioned stocks.

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