Insiders at Ladder Capital Corp (NYSE:LADR) must be relieved they sold stock as market valuation descends to US$1.5b

By
Simply Wall St
Published
January 21, 2022
NYSE:LADR
Source: Shutterstock

Insiders seem to have made the most of their holdings by selling US$72k worth of Ladder Capital Corp (NYSE:LADR) stock at an average sell price of US$12.06 during the past year. After the stock price dropped 3.8% last week, the company's market value declined by US$59m, but insiders were able to mitigate their losses.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Ladder Capital

Ladder Capital Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Accounting Officer, Kevin Moclair, sold US$72k worth of shares at a price of US$12.06 per share. So we know that an insider sold shares at around the present share price of US$11.78. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Kevin Moclair was the only individual insider to sell shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:LADR Insider Trading Volume January 21st 2022

I will like Ladder Capital better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Ladder Capital Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Ladder Capital insiders own 11% of the company, worth about US$157m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Ladder Capital Tell Us?

It doesn't really mean much that no insider has traded Ladder Capital shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Ladder Capital insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Ladder Capital is showing 4 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

But note: Ladder Capital 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, but not derivative transactions.

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