Great news for CIM Commercial Trust Corporation (NASDAQ:CMCT): Insiders acquired stock in large numbers last year
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in CIM Commercial Trust Corporation's (NASDAQ:CMCT) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for CIM Commercial Trust
CIM Commercial Trust Insider Transactions Over The Last Year
There wasn't any very large single transaction over the last year, but we can still observe some trading.
CIM Commercial Trust insiders may have bought shares in the last year, but they didn't sell any. 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!
CIM Commercial Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at CIM Commercial Trust Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at CIM Commercial Trust. Chief Executive Officer David Thompson shelled out US$35k for shares in that time. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Does CIM Commercial Trust Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own US$2.8m worth of CIM Commercial Trust stock, about 1.7% of the company. I generally like to see higher levels of ownership.
What Might The Insider Transactions At CIM Commercial Trust Tell Us?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if CIM Commercial Trust insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 4 warning signs for CIM Commercial Trust (of which 2 make us uncomfortable!) you should know about.
But note: CIM Commercial Trust 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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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.
