CEO, Chief Investment Officer & Director David Finkelstein Just Bought 25% More Shares In Annaly Capital Management, Inc. (NYSE:NLY)
Annaly Capital Management, Inc. (NYSE:NLY) shareholders (or potential shareholders) will be happy to see that the CEO, Chief Investment Officer & Director, David Finkelstein, recently bought a whopping US$603k worth of stock, at a price of US$6.03. Not only is that a big swing, but it increased their holding size by 25%, which is definitely great to see.
Check out our latest analysis for Annaly Capital Management
Annaly Capital Management Insider Transactions Over The Last Year
In fact, the recent purchase by CEO, Chief Investment Officer & Director David Finkelstein was not their only acquisition of Annaly Capital Management shares this year. They previously made an even bigger purchase of US$956k worth of shares at a price of US$9.56 per share. That means that even when the share price was higher than US$6.28 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Annaly Capital Management insiders were buying shares, but not selling. The average buy price was around US$8.29. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Annaly Capital Management 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 Annaly Capital Management Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Annaly Capital Management insiders own 0.3% of the company, worth about US$28m. 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 Annaly Capital Management Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. 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 Annaly Capital Management shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 5 warning signs for Annaly Capital Management (of which 3 shouldn't be ignored!) you should know about.
But note: Annaly Capital Management may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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