Need To Know: Blackstone Mortgage Trust Inc (NYSE:BXMT) Insiders Have Been Selling Shares

We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Blackstone Mortgage Trust Inc (NYSE:BXMT).

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.

We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.

Check out our latest analysis for Blackstone Mortgage Trust

The Last 12 Months Of Insider Transactions At Blackstone Mortgage Trust

Director Leonard Cotton made the biggest insider purchase in the last 12 months. That single transaction was for US$102k worth of shares at a price of US$33.87 each. That means that an insider was happy to buy shares at around the current price. Of course they may have changed their mind. But this suggests they are optimistic. Nonetheless, we consider it positive if insiders want to buy at around the current share price. The only inside buyer over the last year was Leonard Cotton.

The chart below shows insider transactions over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:BXMT Insider Trading December 3rd 18
NYSE:BXMT Insider Trading December 3rd 18

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Insiders at Blackstone Mortgage Trust Have Bought Stock Recently

Over the last three months, we’ve seen a bit of insider buying at Blackstone Mortgage Trust. Leonard Cotton bought US$102k worth of shares in that time. However, they netted US$83k for sales. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.

Insider Ownership of Blackstone 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.1% of Blackstone Mortgage Trust shares, worth about US$47m. This level of insider ownership is good but just short of being particularly stand-out, but it certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Blackstone Mortgage Trust Tell Us?

Our data shows a little more insider buying than selling in the last three months. But overall the difference isn’t worth writing home about. We’re a little cautious about the insider selling at Blackstone Mortgage Trust. And usually insiders own more stock in the company, according to our data. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course Blackstone Mortgage Trust may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.