Bullish Claros Mortgage Trust Insider Buying Worth US$1.67m Yet To Pay Off

The recent 13% drop in Claros Mortgage Trust, Inc.'s (NYSE:CMTG) stock could come as a blow to insiders who purchased US$1.67m worth of stock at an average buy price of US$7.16 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$598.8k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Claros Mortgage Trust

The Last 12 Months Of Insider Transactions At Claros Mortgage Trust

In the last twelve months, the biggest single purchase by an insider was when Chairman & CEO Richard Mack bought US$1.2m worth of shares at a price of US$7.25 per share. That means that even when the share price was higher than US$2.57 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Claros Mortgage Trust insiders bought shares during the last year, they didn't sell. 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Claros Mortgage Trust insiders own 1.7% of the company, worth about US$6.9m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

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

The fact that there have been no Claros Mortgage Trust insider transactions recently certainly doesn't bother us. 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 Claros Mortgage Trust insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Claros Mortgage Trust. Every company has risks, and we've spotted 2 warning signs for Claros Mortgage Trust (of which 1 shouldn't be ignored!) you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.