Yahoo Finance Barry Sternlicht Is The CEO & Non-Independent Executive Chairman of the Board of Starwood Property Trust, Inc. (NYSE:STWD) And They Just Picked Up 2.1% More Shares
Those following along with Starwood Property Trust, Inc. (NYSE:STWD) will no doubt be intrigued by the recent purchase of shares by Barry Sternlicht, CEO & Non-Independent Executive Chairman of the Board of the company, who spent a stonking US$4.9m on stock at an average price of US$22.66. While that only increased their holding size by 2.1%, it is still a big swing by our standards.
View our latest analysis for Starwood Property Trust
Starwood Property Trust Insider Transactions Over The Last Year
In fact, the recent purchase by Barry Sternlicht was the biggest purchase of Starwood Property Trust shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$24.81. Of course they may have changed their mind. But this suggests they are optimistic. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid US$5.1m for 224.00k shares. But they sold 38.00k shares for US$1.0m. In total, Starwood Property Trust insiders bought more than they sold over the last year. 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!
Starwood Property Trust is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Starwood Property Trust insiders own 4.3% of the company, worth about US$324m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Starwood Property Trust Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Starwood Property Trust insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Starwood Property Trust. For example, Starwood Property Trust has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
But note: Starwood Property 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, but not derivative transactions.
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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.
