Yahoo Finance Chairman & CEO of Claros Mortgage Trust Richard Mack Buys 10% More Shares
Those following along with Claros Mortgage Trust, Inc. (NYSE:CMTG) will no doubt be intrigued by the recent purchase of shares by Richard Mack, Chairman & CEO of the company, who spent a stonking US$1.2m on stock at an average price of US$7.20. Not only is that a big swing, but it increased their holding size by 10%, which is definitely great to see.
See our latest analysis for Claros Mortgage Trust
Claros Mortgage Trust Insider Transactions Over The Last Year
In fact, the recent purchase by Richard Mack was the biggest purchase of Claros Mortgage Trust shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$7.89 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
Claros Mortgage Trust 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. By clicking on the graph below, you can see the precise details of each insider transaction!
Claros Mortgage Trust is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Claros Mortgage Trust Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Claros Mortgage Trust insiders own about US$16m worth of shares. That equates to 1.5% of the company. 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 Claros Mortgage Trust Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Claros Mortgage Trust insiders are well aligned, and that they may think the share price is too low. 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. Case in point: We've spotted 2 warning signs for Claros Mortgage Trust you should be aware of.
But note: Claros 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
