Multiple insiders secured a larger position in Claros Mortgage Trust, Inc. (NYSE:CMTG) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Claros Mortgage Trust Insider Transactions Over The Last Year

The Chairman & CEO Richard Mack made the biggest insider purchase in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$7.25 each. So it's clear an insider wanted to buy, at around the current price, which is US$7.51. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Claros Mortgage Trust share holders is that insiders were buying at near the current price.

In the last twelve months Claros Mortgage Trust insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Claros Mortgage Trust Boast High 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 1.7% of Claros Mortgage Trust shares, worth about US$18m. 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 Claros Mortgage Trust Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Claros Mortgage Trust shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Claros Mortgage Trust and their transactions don't cause us concern. 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. Our analysis shows 2 warning signs for Claros Mortgage Trust (1 is significant!) and we strongly recommend you look at these before investing.

Of course Claros 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.