Some Public Storage (NYSE:PSA) shareholders may be a little concerned to see that insider Tamara Gustavson recently sold a substantial US$961k worth of stock at a price of US$353 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.02%.
Public Storage Insider Transactions Over The Last Year
Notably, that recent sale by Tamara Gustavson is the biggest insider sale of Public Storage shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$351. While we don't usually like to see insider selling, it's more concerning if the sales take place 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.
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!
I will like Public Storage better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Public Storage insiders own 13% of the company, worth about US$8.0b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Public Storage Insider Transactions Indicate?
An insider sold Public Storage shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Public Storage is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for Public Storage and we suggest you have a look.
But note: Public Storage may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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