Chairman & CEO of Claros Mortgage Trust Picks Up 9.8% More Stock
Potential Claros Mortgage Trust, Inc. (NYSE:CMTG) shareholders may wish to note that the Chairman & CEO, Richard Mack, recently bought US$351k worth of stock, paying US$1.59 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 9.8%.
Claros Mortgage Trust Insider Transactions Over The Last Year
Notably, that recent purchase by Richard Mack is the biggest insider purchase of Claros Mortgage Trust shares that we've seen in the last year. That means that even when the share price was higher than US$1.58 (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. To us, it's very important to consider the price insiders pay for shares. 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.
While Claros Mortgage Trust insiders bought shares during the last year, they didn't sell. They paid about US$1.81 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Claros Mortgage Trust
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.
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. We usually like to see fairly high levels of insider ownership. Based on our data, Claros Mortgage Trust insiders have about 2.2% of the stock, worth approximately US$4.7m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Claros Mortgage Trust Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Claros Mortgage Trust stock. 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 Claros Mortgage Trust has 2 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.
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.