From what we can see, insiders were net buyers in Sunrise Realty Trust, Inc.'s( NASDAQ:SUNS ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Sunrise Realty Trust
Over the last year, we can see that the biggest insider purchase was by Founder & Executive Chairman Leonard Tannenbaum for US$1.3m worth of shares, at about US$9.77 per share. That means that an insider was happy to buy shares at above the current price of US$7.42. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Leonard Tannenbaum.
Leonard Tannenbaum bought 401.51k shares over the last 12 months at an average price of US$9.97. 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!
Check out our latest analysis for Sunrise Realty Trust
Sunrise Realty Trust is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Sunrise Realty Trust Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Sunrise Realty Trust insiders own about US$29m worth of shares. That equates to 29% 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.
What Might The Insider Transactions At Sunrise Realty Trust Tell Us?
The fact that there have been no Sunrise Realty Trust insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Sunrise Realty Trust insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sunrise Realty Trust. In terms of investment risks, we've identified 2 warning signs with Sunrise Realty Trust and understanding these should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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