The fact that multiple Medical Properties Trust, Inc. (NYSE:MPW) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more. While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares. See our latest analysis for Medical Properties Trust In the last twelve months, the biggest single sale by an insider was when the Founder, Edward Aldag, sold US$15m worth of shares at a price of US$21.21 per share. That means that even when the share price was below the current price of US$21.67, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it’s only a weak signal. It is worth noting that this sale was only 18% of Edward Aldag’s holding. In the last year Medical Properties Trust insiders didn’t buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction! NYSE:MPW Insider Trading Volume November 20th 2021 I will like Medical Properties Trust better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying. Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Medical Properties Trust insiders own about US$139m worth of shares (which is 1.1% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders. It doesn’t really mean much that no insider has traded Medical Properties Trust shares in the last quarter. While we feel good about high insider ownership of Medical Properties Trust, we can’t say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. For instance, we’ve identified 2 warning signs for Medical Properties Trust (1 is concerning) you should be aware of. 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. 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. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. The Last 12 Months Of Insider Transactions At Medical Properties Trust
Insider Ownership of Medical Properties Trust
What Might The Insider Transactions At Medical Properties Trust Tell Us?