In the last year, multiple insiders have substantially increased their holdings of Claros Mortgage Trust, Inc. (NYSE:CMTG) stock, indicating that insiders' optimism about the company's prospects has increased.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Claros Mortgage Trust
Over the last year, we can see that the biggest insider purchase was by Independent Director W. Walter for US$500k worth of shares, at about US$18.55 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$12.51). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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. The chart below shows insider transactions (by companies and 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!
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.
Does Claros Mortgage Trust 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 Claros Mortgage Trust insiders own 1.0% of the company, worth about US$18m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
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. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Claros Mortgage Trust and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Claros Mortgage Trust. When we did our research, we found 3 warning signs for Claros Mortgage Trust (2 don't sit too well with us!) that we believe deserve your full attention.
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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