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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Granite Point Mortgage Trust Inc. (NYSE:GPMT).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Granite Point Mortgage Trust Insider Transactions Over The Last Year
Chief Operating Officer Steven Plust made the biggest insider purchase in the last 12 months. That single transaction was for US$103k worth of shares at a price of US$17.85 each. That implies that an insider found the current (approximate) price enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. In any event it’s generally a positive if insiders are buying shares at around the current price.
In the last twelve months insiders paid US$273k for 15.07k shares purchased. In total, Granite Point Mortgage Trust insiders bought more than they sold over the last year. Their average price was about US$18.11. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of US$18.93. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Granite Point Mortgage Trust
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Granite Point Mortgage Trust insiders own about US$20m worth of shares. That equates to 2.1% of the company. 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 Granite Point Mortgage Trust Insider Transactions Indicate?
It doesn’t really mean much that no insider has traded Granite Point Mortgage Trust shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Granite Point Mortgage Trust and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Granite Point Mortgage Trust, you should check out this free report on analyst forecasts for the company.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.