Trade Alert: The Independent Trustee Of JBG SMITH Properties (NYSE:JBGS), Alan Forman, Has Just Spent US$122k Buying A Few More Shares

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Potential JBG SMITH Properties (NYSE:JBGS) shareholders may wish to note that the Independent Trustee, Alan Forman, recently bought US$122k worth of stock, paying US$24.32 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

View our latest analysis for JBG SMITH Properties

JBG SMITH Properties Insider Transactions Over The Last Year

Notably, that recent purchase by Alan Forman is the biggest insider purchase of JBG SMITH Properties shares that we’ve seen in the last year. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$24.32). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Alan Forman was the only individual insider to buy shares in the last twelve months.

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!

insider-trading-volume

JBG SMITH Properties is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does JBG SMITH Properties Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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 JBG SMITH Properties insiders own 1.4% of the company, worth about US$46m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About JBG SMITH Properties Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest JBG SMITH Properties insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. While conducting our analysis, we found that JBG SMITH Properties has 2 warning signs and it would be unwise to ignore them.

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.

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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.