Insider Spends US$121k Buying More Shares In Claros Mortgage Trust

Investors who take an interest in Claros Mortgage Trust, Inc. (NYSE:CMTG) should definitely note that the Chairman & CEO, Richard Mack, recently paid US$3.46 per share to buy US$121k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.4%.

See our latest analysis for Claros Mortgage Trust

The Last 12 Months Of Insider Transactions At Claros Mortgage Trust

In fact, the recent purchase by Chairman & CEO Richard Mack was not their only acquisition of Claros Mortgage Trust shares this year. They previously made an even bigger purchase of 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$3.99 (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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Claros Mortgage Trust insiders were buying shares, but not selling. 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!

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.

Does Claros Mortgage Trust Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Claros Mortgage Trust insiders own 1.7% of the company, worth about US$9.7m. Whilst better than nothing, we're not overly impressed by these holdings.

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

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Claros Mortgage Trust insiders are expecting a bright future. 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. Be aware that Claros Mortgage Trust is showing 2 warning signs in our investment analysis, and 1 of those is significant...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.