Granite Point Mortgage Trust Insiders Lose Out As Stock Sinks To US$3.83

Insiders who acquired US$142.0k worth of Granite Point Mortgage Trust Inc.'s (NYSE:GPMT) stock at an average price of US$4.82 in the past 12 months may be dismayed by the recent 11% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$112.8k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Granite Point Mortgage Trust

Granite Point Mortgage Trust Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when VP, CFO Marcin Urbaszek bought US$69k worth of shares at a price of US$4.64 per share. That means that even when the share price was higher than US$3.83 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Granite Point Mortgage Trust insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Granite Point Mortgage Trust is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Granite Point Mortgage Trust Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Granite Point Mortgage Trust insiders have about 2.3% of the stock, worth approximately US$4.5m. We consider this fairly low insider ownership.

So What Does This Data Suggest About Granite Point Mortgage Trust Insiders?

The fact that there have been no Granite Point 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 Granite Point Mortgage Trust insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Granite Point Mortgage Trust. At Simply Wall St, we found 3 warning signs for Granite Point Mortgage Trust that deserve your attention before buying any shares.

But note: Granite Point 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.