Gerard Creagh Bought 10.0% More Shares In Chimera Investment

Potential Chimera Investment Corporation (NYSE:CIM) shareholders may wish to note that the Independent Chairman of the Board, Gerard Creagh, recently bought US$166k worth of stock, paying US$13.31 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 10.0%.

See our latest analysis for Chimera Investment

The Last 12 Months Of Insider Transactions At Chimera Investment

Over the last year, we can see that the biggest insider purchase was by insider Jack Macdowell for US$1.5m worth of shares, at about US$14.91 per share. That means that an insider was happy to buy shares at above the current price of US$13.63. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

In the last twelve months Chimera Investment insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. 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 1.5% of Chimera Investment shares, worth about US$17m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Chimera Investment Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Chimera Investment we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Chimera Investment. At Simply Wall St, we've found that Chimera Investment has 2 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.

But note: Chimera Investment 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.