Trade Alert: The Independent Director Of Claros Mortgage Trust, Inc. (NYSE:CMTG), W. Walter, Has Just Spent US$500k Buying 216% More Shares
Claros Mortgage Trust, Inc. (NYSE:CMTG) shareholders (or potential shareholders) will be happy to see that the Independent Director, W. Walter, recently bought a whopping US$500k worth of stock, at a price of US$18.54. That increased their holding by a full 216%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
View our latest analysis for Claros Mortgage Trust
The Last 12 Months Of Insider Transactions At Claros Mortgage Trust
In the last twelve months, the biggest single purchase by an insider was when Chairman & CEO Richard Mack bought US$5.0m worth of shares at a price of US$18.65 per share. That means that even when the share price was higher than US$18.30 (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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Claros Mortgage Trust insiders bought shares during the last year, they didn't sell. 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!
Claros Mortgage Trust 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 Claros Mortgage Trust
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. It appears that Claros Mortgage Trust insiders own 1.0% of the company, worth about US$25m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Claros Mortgage Trust Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Claros Mortgage Trust shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for Claros Mortgage Trust (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.
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.
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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