Yahoo Finance Steven Mumma Is The Chairman & CEO of New York Mortgage Trust, Inc. (NASDAQ:NYMT) And They Just Spent US$273k On Shares
Potential New York Mortgage Trust, Inc. (NASDAQ:NYMT) shareholders may wish to note that the Chairman & CEO, Steven Mumma, recently bought US$273k worth of stock, paying US$5.46 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.4%.
See our latest analysis for New York Mortgage Trust
New York Mortgage Trust Insider Transactions Over The Last Year
Notably, that recent purchase by Steven Mumma is the biggest insider purchase of New York Mortgage Trust shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$4.10). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid US$332k for 61.00k shares. But they sold 10000 shares for US$63k. In the last twelve months there was more buying than selling by New York Mortgage Trust insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
New York Mortgage Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does New York Mortgage Trust Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that New York Mortgage Trust insiders own 0.5% of the company, worth about US$8.2m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About New York Mortgage Trust Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that New York Mortgage Trust insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, New York Mortgage Trust has 3 warning signs (and 2 which make us uncomfortable) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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