Claros Mortgage Trust Insiders Placed Bullish Bets Worth US$1.67m

Multiple insiders secured a larger position in Claros Mortgage Trust, Inc. (NYSE:CMTG) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Claros Mortgage Trust

The Last 12 Months Of Insider Transactions At Claros Mortgage Trust

The Chairman & CEO Richard Mack made the biggest insider purchase in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$7.25 each. So it's clear an insider wanted to buy, at around the current price, which is US$7.51. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Claros Mortgage Trust share holders is that insiders were buying at near the current price.

In the last twelve months Claros Mortgage Trust insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Claros Mortgage Trust insiders own about US$18m worth of shares. That equates to 1.7% 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?

The fact that there have been no Claros Mortgage Trust insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Claros Mortgage Trust and their transactions don't cause us concern. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Claros Mortgage Trust has 2 warning signs (and 1 which is a bit concerning) we think 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.

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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.