Over the last year, a good number of insiders have significantly increased their holdings in Blackstone Mortgage Trust, Inc. (NYSE:BXMT). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
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.
The Last 12 Months Of Insider Transactions At Blackstone Mortgage Trust
In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board Timothy Johnson bought US$998k worth of shares at a price of US$17.50 per share. So it's clear an insider wanted to buy, at around the current price, which is US$18.80. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. 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 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!
Blackstone Mortgage Trust is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Blackstone Mortgage Trust insiders own about US$28m 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.
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. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Blackstone Mortgage Trust and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Blackstone Mortgage Trust (2 are a bit unpleasant!) and we strongly recommend you look at these before investing.
Of course Blackstone Mortgage 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 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.
