A few Pebblebrook Hotel Trust (NYSE: PEB) insiders have sold shares in the past 12 months: not a good sign for shareholders
Pebblebrook Hotel Trust (NYSE: PEB) Shareholders may have reason to be concerned, as several insiders have sold their shares in the past year. When analyzing insider transactions, it is usually more useful to know if insiders are buying rather than knowing if they are selling, because the latter sends an ambiguous message. However, if many insiders are selling, shareholders should investigate further.
While we never suggest that investors should base their decisions solely on what the directors of a company have done, we consider it foolish to ignore insider trading altogether.
Check out our latest review for Pebblebrook Hotel Trust
Pebblebrook Hotel Trust Insider Transactions over the Past Year
Over the past year, we can see that the biggest insider sale was done by Executive Vice President Raymond Martz for US $ 220,000 of shares, at around US $ 23.73 per share. So what is clear is that an insider saw fit to sell around the current price of US $ 22.46. We usually don’t like to see insider sales, but the lower the selling price, the more it concerns us. In this case, the big sale took place around the current price, so it’s not too bad (but it’s still not positive).
Pebblebrook Hotel Trust insiders have not bought any shares in the past year. You can see insider trading (by companies and individuals) over the past year represented in the graph below. By clicking on the graph below, you can see the precise detail of each insider trade!
If you like to buy stocks that insiders buy rather than sell, then you might love this free list of companies. (Hint: insiders bought them).
Insider property of Pebblebrook Hotel Trust
I like to look at how many shares insiders own in a company, to help inform my perspective on their alignment with insiders. We generally like to see fairly high levels of insider ownership. It appears that insiders of Pebblebrook Hotel Trust own 1.4% of the company, worth around $ 41 million. While this is a high but not exceptional level of insider ownership, it is enough to indicate some alignment between management and small shareholders.
What might insider trading at the Pebblebrook Hotel Trust tell us?
There haven’t been any insider trading in the past three months, that doesn’t mean much. Still, insider trading at the Pebblebrook Hotel Trust over the past 12 months is not very encouraging. The modest level of insider ownership is, at least, some comfort. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. Every business has risks, and we have spotted 1 warning sign for Pebblebrook Hotel Trust you should know.
But beware : Pebblebrook Hotel Trust may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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