Don't Ignore The Insider Selling In Real Brokerage
We'd be surprised if The Real Brokerage Inc. (NASDAQ:REAX) shareholders haven't noticed that the Independent Director, Laurence Rose, recently sold US$396k worth of stock at US$3.96 per share. However, the silver lining is that the sale only reduced their total holding by 9.1%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Real Brokerage
In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Tamir Poleg, sold US$787k worth of shares at a price of US$4.42 per share. So we know that an insider sold shares at around the present share price of US$4.23. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last twelve months insiders purchased 5.00k shares for US$20k. On the other hand they divested 2.50m shares, for US$11m. All up, insiders sold more shares in Real Brokerage 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!
View our latest analysis for Real Brokerage
I will like Real Brokerage better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of Real Brokerage
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Real Brokerage insiders own 6.7% of the company, worth about US$60m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Real Brokerage Tell Us?
Insiders sold Real Brokerage shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Real Brokerage. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Real Brokerage.
Of course Real Brokerage 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 of direct interests only, but not derivative transactions or indirect interests.
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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.