Yahoo Finance Positive Signs As Multiple Insiders Buy Granite Point Mortgage Trust Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Granite Point Mortgage Trust Inc.'s (NYSE:GPMT) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Granite Point Mortgage Trust
The Last 12 Months Of Insider Transactions At Granite Point Mortgage Trust
In the last twelve months, the biggest single purchase by an insider was when VP, CFO Marcin Urbaszek bought US$69k worth of shares at a price of US$4.64 per share. That means that even when the share price was higher than US$4.47 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Granite Point Mortgage Trust insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data indicates that Granite Point Mortgage Trust insiders own about US$5.8m worth of shares (which is 2.5% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Granite Point Mortgage Trust Insider Transactions Indicate?
The fact that there have been no Granite Point Mortgage Trust insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Granite Point Mortgage Trust stock. 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 Granite Point Mortgage Trust is showing 3 warning signs in our investment analysis, and 2 of those are a bit concerning...
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
