Blackstone Mortgage Trust, Inc. (NYSE:BXMT) shareholders (or potential shareholders) will be happy to see that the CEO, Global Head of BREDS & Chairman of the Board, Timothy Johnson, recently bought a whopping US$1.0m worth of stock, at a price of US$11.50. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 17%.
Blackstone Mortgage Trust Insider Transactions Over The Last Year
Notably, that recent purchase by Timothy Johnson is the biggest insider purchase of Blackstone Mortgage Trust shares that we've seen in the last year. That means that even when the share price was higher than US$11.16 (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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Blackstone Mortgage Trust
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.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.2% of Blackstone Mortgage Trust shares, worth about US$22m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Blackstone Mortgage Trust Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Blackstone Mortgage Trust insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Blackstone Mortgage Trust you should be aware of, and 1 of them is a bit concerning.
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 of direct interests only, but not derivative transactions or indirect interests.
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