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.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Blackstone Mortgage Trust
The Last 12 Months Of Insider Transactions At Blackstone Mortgage Trust
The Executive Chairman of the Board Michael Nash made the biggest insider purchase in the last 12 months. That single transaction was for US$943k worth of shares at a price of US$18.86 each. We do like to see buying, but this purchase was made at well below the current price of US$21.63. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Blackstone Mortgage Trust insiders may have bought shares in the last year, but they didn't sell any. 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!
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.0% of Blackstone Mortgage Trust shares, worth about US$36m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Blackstone Mortgage Trust Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Blackstone Mortgage Trust shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Blackstone Mortgage Trust and their transactions don't cause us concern. 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. When we did our research, we found 2 warning signs for Blackstone Mortgage Trust (1 can't be ignored!) that we believe deserve your full attention.
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.