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Insiders made the right call by buying US$1.1m Annaly Capital Management, Inc. (NYSE:NLY) stock this year, currently sit on US$30k profit

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·3 min read
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Insiders who purchased Annaly Capital Management, Inc. (NYSE:NLY) shares in the past 12 months are unlikely to be deeply impacted by the stock's 13% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of US$1.1m is now worth US$1.1m.

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.

Check out our latest analysis for Annaly Capital Management

Annaly Capital Management Insider Transactions Over The Last Year

In fact, the recent purchase by David Finkelstein was the biggest purchase of Annaly Capital Management shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$5.71. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Annaly Capital Management share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was David Finkelstein.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Annaly Capital Management

Many investors like to check how much of a company is owned by 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 0.2% of the company, worth about US$22m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Annaly Capital Management Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Annaly Capital Management we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Annaly Capital Management. To help with this, we've discovered 6 warning signs (2 are a bit concerning!) that you ought to be aware of before buying any shares in Annaly Capital Management.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.