85% Of This ARMOUR Residential REIT Insider's Holdings Were Sold

ARMOUR Residential REIT, Inc. -1.37% Pre

ARMOUR Residential REIT, Inc.

ARR

18.74

18.95

-1.37%

+1.12% Pre

From what we can see, insiders were net sellers in ARMOUR Residential REIT, Inc.'s (NYSE:ARR ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for ARMOUR Residential REIT

ARMOUR Residential REIT Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Chairman, Daniel Staton, sold US$1.2m worth of shares at a price of US$19.46 per share. That means that even when the share price was below the current price of US$20.28, 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 85% of Daniel Staton's holding. Daniel Staton was the only individual insider to sell 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:ARR Insider Trading Volume January 30th 2024

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

ARMOUR Residential REIT Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at ARMOUR Residential REIT. In total, Non-Executive Chairman Daniel Staton sold US$1.2m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of ARMOUR Residential REIT

For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 0.5% of ARMOUR Residential REIT shares, worth about US$5.2m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About ARMOUR Residential REIT Insiders?

An insider hasn't bought ARMOUR Residential REIT stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for ARMOUR Residential REIT you should be aware of, and 2 of these are a bit concerning.

But note: ARMOUR Residential REIT 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 of direct interests only, but not derivative transactions or indirect interests.

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