PennyMac Mortgage Investment Trust Insiders Added US$668k Of Stock To Their Holdings
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in PennyMac Mortgage Investment Trust's (NYSE:PMT) case, it's fantastic 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 PennyMac Mortgage Investment Trust
The Last 12 Months Of Insider Transactions At PennyMac Mortgage Investment Trust
The insider Marianne Sullivan made the biggest insider purchase in the last 12 months. That single transaction was for US$286k worth of shares at a price of US$14.25 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$14.05). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.
Happily, we note that in the last year insiders paid US$668k for 49.07k shares. But insiders sold 40.22k shares worth US$518k. In total, PennyMac Mortgage Investment Trust insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At PennyMac Mortgage Investment Trust Have Sold Stock Recently
There was substantially more insider selling, than buying, of PennyMac Mortgage Investment Trust shares over the last three months. In total, insiders sold US$245k worth of shares in that time. On the flip side, Independent Trustee Catherine Lynch spent US$3.2k on purchasing shares. Generally this level of net selling might be considered a bit bearish.
Insider Ownership Of PennyMac Mortgage Investment Trust
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 1.0% of PennyMac Mortgage Investment Trust shares, worth about US$12m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About PennyMac Mortgage Investment Trust Insiders?
The stark truth for PennyMac Mortgage Investment Trust is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. And insiders do own shares. So the recent selling doesn't worry us too much. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 3 warning signs for PennyMac Mortgage Investment Trust (2 can't be ignored) you should be aware of.
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.
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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.
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