W
hen multiple insiders buy stock, it sends a positive signal to shareholders. While investors shouldn't base decisions solely on insider activity, it's worth paying attention to whether they're buying or selling shares. Over the past year, Real Estate Investors Plc (LON:RLE) has seen significant insider purchases, with Finance Director Marcus Hugh Daly buying £92k worth of shares at around £0.37 per share. This suggests he was bullish about the company and believed the shares were worth buying even at a higher price than their current value of £0.30.

    In our view, the price an insider pays for shares is crucial in determining their confidence in the company. In the last 12 months, Real Estate Investors insiders have been buying shares but not selling them. You can see the details of these transactions in the chart below.

    Real Estate Investors isn't the only stock with insider buying activity. It's worth checking how many shares are held by company insiders and whether they own a significant portion of the company. Our data shows that Real Estate Investors insiders own around £4.3m worth of shares, which is 8% of the company. While there haven't been any transactions in the last three months, the overall trend over the past year is encouraging.

    However, we'd like to see bigger individual holdings and consider other risks facing the stock before making an investment decision. Our analysis highlights four warning signs for Real Estate Investors (two are concerning), which investors should be aware of before investing.