Insider Sell: Katharine Keenan Sells 2,275 Shares of Blackstone Mortgage Trust Inc (BXMT)
On September 11, 2023, Katharine Keenan, CEO & President of Blackstone Mortgage Trust Inc (NYSE:BXMT), sold 2,275 shares of the company. This move is part of a series of transactions made by the insider over the past year, which have seen a total of 20,316 shares sold and no shares purchased.
Katharine Keenan is a key figure at Blackstone Mortgage Trust Inc, a real estate finance company that primarily originates and purchases senior mortgage loans collateralized by properties in the U.S. and Europe. The company is designed to provide real estate investors with a straightforward way to access institutional-quality commercial real estate loans. Keenan's role as CEO & President places her in a position of significant influence over the company's strategic direction and operational execution.
The insider's recent sell-off has raised some eyebrows among market watchers, given the company's current valuation. As of Keenan's recent transaction, shares of Blackstone Mortgage Trust Inc were trading at $23.21, giving the company a market cap of $3.914 billion.
The company's price-earnings ratio stands at 14.56, lower than the industry median of 17.39 but higher than the company's historical median price-earnings ratio. This suggests that the stock may be undervalued compared to its peers, but overvalued based on its own historical performance.
However, a closer look at the company's GF Value paints a different picture. With a price of $23.21 and a GuruFocus Value of $34.03, Blackstone Mortgage Trust Inc has a price-to-GF-Value ratio of 0.68. This indicates that the stock is significantly undervalued based on its GF Value.
The GF Value is a proprietary valuation model developed by GuruFocus, which takes into account historical multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.
The insider's decision to sell shares at this point could be seen as a bearish signal, especially considering the overall trend of insider transactions at Blackstone Mortgage Trust Inc. Over the past year, there have been 3 insider buys and 20 insider sells, suggesting a net selling trend among the company's insiders.
However, it's important to note that insider transactions can be influenced by a variety of factors, including personal financial needs and tax planning strategies. Therefore, while the insider's recent sell-off is worth noting, it should not be the sole factor considered when making investment decisions.
Investors should also consider the company's financial performance, industry trends, and broader market conditions. As always, a balanced and well-researched approach is key to successful investing.
This article first appeared on GuruFocus.
