This Insider Has Just Sold Shares In Starwood Property Trust, Inc. (NYSE:STWD)

By
Simply Wall St
Published
November 29, 2020
NYSE:STWD

We'd be surprised if Starwood Property Trust, Inc. (NYSE:STWD) shareholders haven't noticed that the COO, General Counsel, Andrew Sossen, recently sold US$240k worth of stock at US$19.21 per share. However, the silver lining is that the sale only reduced their total holding by 5.7%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Starwood Property Trust

The Last 12 Months Of Insider Transactions At Starwood Property Trust

Over the last year, we can see that the biggest insider purchase was by Director Jeffrey Dishner for US$465k worth of shares, at about US$18.60 per share. That means that an insider was happy to buy shares at above the current price of US$18.53. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Jeffrey Dishner was the only individual insider to buy during the last year.

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!

insider-trading-volume
NYSE:STWD Insider Trading Volume November 29th 2020

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Starwood Property 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. We usually like to see fairly high levels of insider ownership. It's great to see that Starwood Property Trust insiders own 3.9% of the company, worth about US$204m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Starwood Property Trust Insiders?

An insider sold Starwood Property Trust shares recently, but they didn't buy any. But we take heart from prior transactions. And insider ownership remains quite considerable. So we're happy to look past recent trading. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Starwood Property Trust (2 are a bit unpleasant!) that we believe deserve your full attention.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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