In the last year, multiple insiders have substantially increased their holdings of Blackstone Mortgage Trust, Inc. (NYSE:BXMT) stock, indicating that insiders' optimism about the company's prospects has increased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Blackstone Mortgage Trust Insider Transactions Over The Last Year

The Chairman of the Board Timothy Johnson made the biggest insider purchase in the last 12 months. That single transaction was for US$998k worth of shares at a price of US$17.50 each. That means that an insider was happy to buy shares at around the current price of US$17.78. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. The good news for Blackstone Mortgage Trust share holders is that insiders were buying at near the current price.

Blackstone Mortgage Trust insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Blackstone Mortgage Trust is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Blackstone Mortgage Trust Insiders Bought Stock Recently

Over the last quarter, Blackstone Mortgage Trust insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$1.4m worth of shares. This is a positive in our book as it implies some confidence.

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. Blackstone Mortgage Trust insiders own about US$27m worth of shares. That equates to 0.9% of the company. 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 Blackstone Mortgage Trust Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Blackstone Mortgage Trust shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Blackstone Mortgage Trust. For instance, we've identified 3 warning signs for Blackstone Mortgage Trust (2 are a bit unpleasant) you should be aware of.

But note: Blackstone Mortgage Trust may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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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.