Market cap

As AG Mortgage Investment Trust, Inc.’s (NYSE:MITT) market cap drops to $117 million, insiders may question their decision to buy earlier this year

Insiders who bought $2.4 million worth of AG Mortgage Investment Trust, Inc. (NYSE:MITT) at an average buy price of $9.82 over the past year may be disappointed with the stock’s recent 13% decline. Insiders buy in the hope that their investments will increase in value over time. However, due to recent losses, their initial investment is now only worth US$1.3 million, which is not huge.

While insider trading isn’t the most important thing when it comes to long-term investing, we think it makes perfect sense to keep tabs on what insiders are doing.

If you’re not interested in researching MITT’s insider trading, we have a free list of interesting investment ideas to potentially inspire your next investment!

The last 12 months of insider trading at AG Mortgage Investment Trust

In the past twelve months, the largest single insider purchase was when CEO and Executive Chairman of the Board David Roberts purchased $2.1 million worth of shares at a price of 10.25 dollars per share. Clearly, an insider wanted to buy, even at a price higher than the current stock price (ie US$5.19). Although their perspective has changed since the purchase, it at least suggests that they have confidence in the future of the company. In our view, the price an insider pays for a stock is very important. It is generally more encouraging if they paid above the current price, as this suggests that they perceived value even at higher levels.

While AG Mortgage Investment Trust insiders have bought shares over the past year, they haven’t sold. The chart below shows insider trading (by companies and individuals) over the past year. By clicking on the graph below, you will be able to see the precise detail of each insider trade!

NYSE: MITT Insider Trading Volume September 26, 2022

AG Mortgage Investment Trust isn’t the only stock insiders are buying. So take a look at this free list of growing companies with insider buying.

AG Mortgage Investment Trust insiders recently bought shares

Over the past quarter, insiders at AG Mortgage Investment Trust have spent a significant amount on stocks. We can see that independent director Matthew Jozoff paid US$59,000 for shares in the company. Nobody sold. This shows some optimism about the future of the company.

Insider ownership

For an ordinary shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the company for the long term. Our data indicates that insiders of AG Mortgage Investment Trust own approximately $5.9 million in stock (or 5.0% of the company). Overall, this level of property isn’t that impressive, but it’s definitely better than nothing!

So what do AG Mortgage Investment Trust’s insider trading indicate?

The recent insider buying is encouraging. And longer-term insider trading also gives us confidence. However, we note that the company has not made a profit in the last twelve months, which makes us cautious. Although overall insider ownership levels are lower than we would like to see, trading history implies that insiders at AG Mortgage Investment Trust are reasonably well aligned and optimistic about the future. In addition to knowing what insider trading is going on, it pays to identify the risks that AG Mortgage Investment Trust faces. Example: we have identified 3 warning signs for AG Mortgage Investment Trust you should be aware.

If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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