Insiders might want to re-evaluate their US$519k stock purchase as Claros Mortgage Trust, Inc. (NYSE:CMTG) drops to US$2.2b
Insiders who acquired US$519k worth of Claros Mortgage Trust, Inc.'s (NYSE:CMTG) stock at an average price of US$18.40 in the past 12 months may be dismayed by the recent 6.7% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$446k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Claros Mortgage Trust
Claros Mortgage Trust Insider Transactions Over The Last Year
The Independent Director W. Walter made the biggest insider purchase in the last 12 months. That single transaction was for US$500k worth of shares at a price of US$18.55 each. That means that an insider was happy to buy shares at above the current price of US$15.82. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Claros Mortgage Trust insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Claros Mortgage Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Claros Mortgage Trust
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Claros Mortgage Trust insiders own 1.0% of the company, worth about US$22m. 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 Do The Claros Mortgage Trust Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Claros Mortgage Trust shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Claros Mortgage Trust and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 2 warning signs we've spotted with Claros Mortgage Trust (including 1 which shouldn't be ignored).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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