Have Insiders Been Buying TPG RE Finance Trust, Inc. (NYSE:TRTX) Shares?

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in TPG RE Finance Trust, Inc. (NYSE:TRTX).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for TPG RE Finance Trust

The Last 12 Months Of Insider Transactions At TPG RE Finance Trust

Over the last year, we can see that the biggest insider purchase was by Chief Investment Officer & VP Peter Smith for US$115k worth of shares, at about US$11.51 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$10.55). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. 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 TPG RE Finance Trust insiders were buying shares, but not selling. The average buy price was around US$9.40. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

TPG RE Finance Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of TPG RE Finance Trust

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that TPG RE Finance Trust insiders own 1.7% of the company, worth about US$13m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The TPG RE Finance Trust Insider Transactions Indicate?

It doesn't really mean much that no insider has traded TPG RE Finance Trust shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in TPG RE Finance Trust and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 4 warning signs for TPG RE Finance Trust (of which 1 is a bit unpleasant!) you should know about.

Of course TPG RE Finance Trust may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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