Trade Alert: The Independent Trustee Of PennyMac Mortgage Investment Trust (NYSE:PMT), Marianne Sullivan, Has Just Spent US$286k Buying 30% More Shares

Potential PennyMac Mortgage Investment Trust (NYSE:PMT) shareholders may wish to note that the Independent Trustee, Marianne Sullivan, recently bought US$286k worth of stock, paying US$14.13 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 30%.

See our latest analysis for PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust Insider Transactions Over The Last Year

In fact, the recent purchase by Marianne Sullivan was the biggest purchase of PennyMac Mortgage Investment Trust shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$14.45. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the PennyMac Mortgage Investment Trust insiders decided to buy shares at close to current prices.

PennyMac Mortgage Investment Trust insiders may have bought shares in the last year, but they didn't sell any. 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!

PennyMac Mortgage Investment Trust is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does PennyMac Mortgage Investment Trust Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that PennyMac Mortgage Investment Trust insiders own 0.9% of the company, worth about US$12m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About PennyMac Mortgage Investment Trust Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in PennyMac Mortgage Investment Trust shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 2 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in PennyMac Mortgage Investment Trust.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, 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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