Investors who take an interest in Two Harbors Investment Corp. (NYSE:TWO) should definitely note that the President, William Greenberg, recently paid US$6.58 per share to buy US$230k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 23%.
The Last 12 Months Of Insider Transactions At Two Harbors Investment
Notably, that recent purchase by William Greenberg is the biggest insider purchase of Two Harbors Investment shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$6.60. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay 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.
Two Harbors Investment insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Two Harbors Investment is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Two Harbors Investment
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Two Harbors Investment insiders own 0.8% of the company, worth about US$15m. 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 Does This Data Suggest About Two Harbors Investment Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Two Harbors Investment insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Two Harbors Investment. For example, Two Harbors Investment has 2 warning signs (and 1 which is concerning) we think you should know about.
But note: Two Harbors Investment may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
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. 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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