We wouldn’t blame Digital Realty Trust, Inc. (NYSE:DLR) shareholders if they were a little worried about the fact that David Ruberg, the Executive VP & Strategic Advisor recently netted about US$10m selling shares at an average price of US$138. That sale reduced their total holding by 30% which is hardly insignificant, but far from the worst we’ve seen.
View our latest analysis for Digital Realty Trust
Digital Realty Trust Insider Transactions Over The Last Year
In fact, the recent sale by David Ruberg was the biggest sale of Digital Realty Trust shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$134. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In total, Digital Realty Trust insiders sold more than they bought 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!
NYSE:DLR Insider Trading Volume June 5th 2022
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Digital Realty Trust Boast High Insider Ownership?
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Digital Realty Trust insiders own 0.1% of the company, worth about US$42m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Digital Realty Trust Insider Transactions Indicate?
The stark truth for Digital Realty Trust is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn’t give us much comfort. On the plus side, Digital Realty Trust makes money, and is growing profits. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’re in no rush to buy! In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Digital Realty Trust. Case in point: We’ve spotted 3 warning signs for Digital Realty Trust you should be aware of, and 1 of these makes us a bit uncomfortable.
Of course Digital Realty Trust may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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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.