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Even if it's not a huge purchase, we think it was good to see that Catherine Lynch, the Independent Trustee of PennyMac Mortgage Investment Trust (NYSE:PMT) recently shelled out US$62k to buy stock, at US$12.39 per share. While that isn't the hugest buy, it actually boosted their shareholding by 89%, which is good to see.
See our latest analysis for PennyMac Mortgage Investment Trust
The Last 12 Months Of Insider Transactions At PennyMac Mortgage Investment Trust
The Chairman of the Board & CEO David Spector made the biggest insider purchase in the last 12 months. That single transaction was for US$274k worth of shares at a price of US$13.71 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$13.30). 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.
While PennyMac Mortgage Investment 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
PennyMac Mortgage Investment Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does PennyMac Mortgage Investment Trust Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. PennyMac Mortgage Investment Trust insiders own about US$11m worth of shares. That equates to 0.9% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At PennyMac Mortgage Investment Trust Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest PennyMac Mortgage Investment Trust insiders are well aligned, and that they may think the share price is too low. 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. At Simply Wall St, we've found that PennyMac Mortgage Investment Trust has 3 warning signs (2 shouldn't be ignored!) that deserve your attention before going any further with your analysis.