REIT Insiders Stepping Up to the Plate

This sector has been a hive of insider buying of late.

| More on:
The Motley Fool

For reasons that we outlined in a post last week, REITs have not been holding up very well of late.  In a nutshell, rising interest rates are bad for this sector.

Their recent performance however has spurred one group of investors to step up to the plate and begin buying these names.  According to Ted Dixon, CEO of INK Research, the “30-day REIT indicator is currently 800 per cent”.  What this indicates is that there is buying in 8 REITs for every one that is being sold.  This compares to the indicator for the TSX which stands at just 172.9 per cent.

We went to Mr. Dixon’s site and had a peek to see just which REITs had most recently experienced this bout of bullish activity.  Our findings are summarized in the table below:

Company Name




Morguard REIT (TSX:MRT.UN)

Morguard Corp.

Largest shareholder



Andrew Hoffman

Board member


James Fisher

Board member


First Capital (TSX:FCR)

Dori Segal




Larry Froom



*Segal exercised options to acquire his shares

Foolish Takeaway

As the old saying goes, there are plenty of reasons why an insider might sell a stock.  There is however just one reason why they would buy.  And, if an academic report that we profiled several weeks ago is any indication, the transaction you want to focus on here is the H+R purchase.  The study suggests that when the CFO is buying, you should be too.

Canada’s REIT sector has acted as a haven for investors that are looking for yield.  To add some diversity to your income-producing portfolio, simply click here to download our FREE report “13 High Yielding Stocks to Buy Today”.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Iain Butler does not own any of the companies mentioned in this report.  The Motley Fool has no position in any stocks mentioned at this time

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Investing

stock analysis
Dividend Stocks

Buy These TSX Dividend Shares Next Week

Are you looking for dividend stocks to add to your portfolio? Buy these picks next week!

Read more »

Shopping and e-commerce
Tech Stocks

1 Tech Stock You’ll Be Glad You Bought When the Bull Market Starts

Historically, tech stocks have done well during bull markets. Here’s one you’ll be happy you bought before the next bull…

Read more »

edit Safety First illustration
Dividend Stocks

3 of the Safest Dividend Stocks in Canada

These three dividend stocks are all high-quality companies with defensive operations, making them some of the safest investments in Canada.

Read more »

data analyze research
Bank Stocks

Better Buy: Royal Bank Stock or Bank of Nova Scotia?

Bank stocks appear cheap after the latest plunge. Is Royal Bank or Bank of Nova Scotia a buy today?

Read more »

A person builds a rock tower on a beach.
Dividend Stocks

3 Stocks to Anchor Your Portfolio in a Rocky Market

Three stocks are solid anchors in any portfolio today for their outperformance in a weak market and defiance of the…

Read more »

Metals and Mining Stocks

Better Metals Buy: Gold Stocks vs. Lithium Stocks

Gold is the evergreen choice as a hedge against inflation and weak markets. In contrast, battery metals may offer unique…

Read more »

Man making notes on graphs and charts
Bank Stocks

TD Bank Stock: A TSX Top Pick Amid U.S. Banking Rout?

TD Bank (TSX:TD) stock could prove a worthy bet for brave investors who aren't fearful over the recent wave of…

Read more »

edit Sale sign, value, discount
Tech Stocks

2 Cheap Tech Stocks to Buy Right Now

Many tech stocks offer exceptional returns compared to other stock sectors when the market is bullish. You can add to…

Read more »