By selling US$54m worth of Prologis, Inc. (NYSE:PLD) stock at an average sell price of US$147 over the last year, insiders seemed to have made the most of their holdings. The company's market worth decreased by US$3.8b over the past week after the stock price dropped 4.5%, although insiders were able to minimize their losses
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Prologis
Prologis Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Hamid Moghadam, sold US$46m worth of shares at a price of US$145 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$109. So it may not shed much light on insider confidence at current levels.
In total, Prologis insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Prologis better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Prologis Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Prologis insiders own about US$97m worth of shares. That equates to 0.1% of the company. 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 Does This Data Suggest About Prologis Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at Prologis in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Prologis. Every company has risks, and we've spotted 3 warning signs for Prologis (of which 2 make us uncomfortable!) you should know about.
Of course Prologis 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.
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