Have Insiders Been Buying National Storage Affiliates Trust (NYSE:NSA) Shares? – Simply Wall St News

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in National Storage Affiliates Trust (NYSE:NSA).

Do Insider Transactions Matter?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.

See our latest analysis for National Storage Affiliates Trust

National Storage Affiliates Trust Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board of Trustees & CEO Arlen Nordhagen bought US$526k worth of shares at a price of US$26.30 per share. That implies that an insider found the current price of US$32.86 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. The good news for National Storage Affiliates Trust share holders is that insiders were buying at near the current price.

Happily, we note that in the last year insiders paid US$541k for 20500 shares. But they sold 10000 for US$283k. In the last twelve months there was more buying than selling by National Storage Affiliates Trust insiders. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insiders at National Storage Affiliates Trust Have Bought Stock Recently

There was some insider buying at National Storage Affiliates Trust over the last quarter. Lead Independent Trustee Paul Hylbert bought US$15k worth of shares in that time. It’s great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Insider Ownership of National Storage Affiliates Trust

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.6% of National Storage Affiliates Trust shares, worth about US$19m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About National Storage Affiliates Trust Insiders?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in National Storage Affiliates Trust and their transactions don’t cause us concern. Of course, the future is what matters most. So if you are interested in National Storage Affiliates Trust, you should check out this free report on analyst forecasts for the company.

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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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