Trade Alert: The Chairman of the Board Of Newmark Group, Inc. (NASDAQ:NMRK), Howard Lutnick, Has Just Spent US$4.8m Buying 4.4% More Shares

By
Simply Wall St
Published
February 21, 2022
NasdaqGS:NMRK
Source: Shutterstock

Newmark Group, Inc. (NASDAQ:NMRK) shareholders (or potential shareholders) will be happy to see that the Chairman of the Board, Howard Lutnick, recently bought a whopping US$4.8m worth of stock, at a price of US$17.21. While that only increased their holding size by 4.4%, it is still a big swing by our standards.

See our latest analysis for Newmark Group

Newmark Group Insider Transactions Over The Last Year

In fact, the recent purchase by Howard Lutnick was the biggest purchase of Newmark Group shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$17.54 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Howard Lutnick was the only individual insider to buy during the last year.

Howard Lutnick bought 377.00k shares over the last 12 months at an average price of US$17.02. 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
NasdaqGS:NMRK Insider Trading Volume February 21st 2022

Newmark Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Newmark Group insiders own about US$184m worth of shares (which is 4.7% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Newmark Group Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Newmark Group insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Newmark Group. Every company has risks, and we've spotted 3 warning signs for Newmark Group you should know about.

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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