Most investors would certainly agree that tracking insider trading behavior should be part of one’s stock selection and analysis process. At the end of the day, company executives and board members have more in-depth knowledge and up-to-date information on how their companies are performing and how they are likely to perform in the future. Of course, there is no corporate insider who could accurately tell you how undervalued or overvalued his or her company’s shares are, but insiders surely have a better understanding of where their companies are heading.
It is commonly known that insiders sell shares for a wide range of reasons that may not be related to their companies’ future prospects or intrinsic value. While not a lot of weight can be put on insider sales, this type of activity should not be overlooked by any means. Insider sales may occasionally suggest that insiders do not anticipate any significant positive developments at their companies in the near future, otherwise they would have not sold the shares in the first place. Greed in financial markets is often viewed as natural and true to the human competitive spirit, which implies insiders won’t sell unless they don’t anticipate major positive announcements or developments in the near-term. That being said, the following article will predominantly discuss fresh insider selling reported with the SEC on Tuesday, as well as cover some mild insider buying.
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CEO of Data Center REIT Purchases Shares After Massive Dividend Increase
To begin with, the man in charge of CoreSite Realty Corp (NYSE:COR) bought a block of shares at the beginning of the week. President and Chief Executive Officer Paul E. Szurek purchased 7,000 shares on Monday at a price tag of $68.92 each, lifting his overall holding to 59,561 shares.
The shares of the provider of data center and interconnection solutions across the United States are up 24% thus far in 2016 despite having embarked a steady downtrend since early July. At the end of September, CoreSite Realty Corp (NYSE:COR)’s property portfolio comprised 18 operating data center facilities, office and light-industrial space and multiple development projects, which collectively comprised more than 2.9 million net rentable square feet. Earlier this month, the company’s Board of Directors approved a cash dividend of $0.80 per share for the fourth quarter, representing an increase of $0.27 per share over the previously-paid dividend. The freshly-increased quarterly dividend equates to an annual dividend yield of 4.54%. Ken Heebner’s Capital Growth Management was the owner of 95,000 shares of CoreSite Realty Corp (NYSE:COR) at the end of the third quarter.
The next pages of this article will discuss more insider transactions reported with the SEC on Tuesday.