President Of PennyMac Mortgage Investment Trust Sold 73% Of Their Shares

We wouldn't blame PennyMac Mortgage Investment Trust (NYSE:PMT) shareholders if they were a little worried about the fact that Douglas Jones, the President recently netted about US$519k selling shares at an average price of US$14.01. That diminished their holding by a very significant 73%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for PennyMac Mortgage Investment Trust

The Last 12 Months Of Insider Transactions At PennyMac Mortgage Investment Trust

Over the last year, we can see that the biggest insider sale was by the Independent Trustee, Scott Carnahan, for US$539k worth of shares, at about US$15.40 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$13.79). So it is hard to draw any strong conclusion from it.

All up, insiders sold more shares in PennyMac Mortgage Investment Trust than they bought, over the last year. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does PennyMac Mortgage Investment Trust Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.0% of PennyMac Mortgage Investment Trust shares, worth about US$12m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At PennyMac Mortgage Investment Trust Tell Us?

The stark truth for PennyMac Mortgage Investment Trust is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that PennyMac Mortgage Investment Trust is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PennyMac Mortgage Investment Trust. Be aware that PennyMac Mortgage Investment Trust is showing 4 warning signs in our investment analysis, and 2 of those are concerning...

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.

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.