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The Non-Executive Chairman of Chimera Investment Corporation (NYSE:CIM), Paul Donlin, Just Bought 40% More Shares

Simply Wall St

Chimera Investment Corporation (NYSE:CIM) shareholders (or potential shareholders) will be happy to see that the Non-Executive Chairman, Paul Donlin, recently bought a whopping US$1.8m worth of stock, at a price of US$15.22. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 40%.

View our latest analysis for Chimera Investment

The Last 12 Months Of Insider Transactions At Chimera Investment

In fact, the recent purchase by Paul Donlin was the biggest purchase of Chimera Investment shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$9.55 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. 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.

In the last twelve months Chimera Investment insiders were buying shares, but not selling. They paid about US$10.52 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:CIM Recent Insider Trading, March 21st 2020

Chimera Investment is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Chimera Investment Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Chimera Investment insiders own about US$31m worth of shares. That equates to 1.7% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Chimera Investment Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Chimera Investment shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Chimera Investment. In terms of investment risks, we've identified 4 warning signs with Chimera Investment and understanding them should be part of your investment process.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.