Yahoo Finance Bullish insiders bet US$618k on Granite Point Mortgage Trust Inc. (NYSE:GPMT)
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Granite Point Mortgage Trust Inc.'s (NYSE:GPMT) case, it's fantastic news for shareholders.
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 Granite Point Mortgage Trust
Granite Point Mortgage Trust Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President John Taylor bought US$128k worth of shares at a price of US$14.21 per share. That means that an insider was happy to buy shares at above the current price of US$9.96. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Granite Point Mortgage Trust insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Granite Point Mortgage Trust insiders own 1.5% of the company, worth about US$8.9m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Granite Point Mortgage Trust Tell Us?
It doesn't really mean much that no insider has traded Granite Point Mortgage Trust shares in the last quarter. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Granite Point Mortgage Trust insiders are doubting the company. 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. At Simply Wall St, we've found that Granite Point Mortgage Trust has 4 warning signs (2 are a bit unpleasant!) that deserve your attention before going any further with your analysis.
But note: Granite Point Mortgage Trust 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.
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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.
