Even if it's not a huge purchase, we think it was good to see that Patrick Halter, the Independent Director of Granite Point Mortgage Trust Inc. (NYSE:GPMT) recently shelled out US$95k to buy stock, at US$2.80 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for Granite Point Mortgage Trust

Granite Point Mortgage Trust Insider Transactions Over The Last Year

Notably, that recent purchase by Patrick Halter is the biggest insider purchase of Granite Point Mortgage Trust shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$2.85. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Granite Point Mortgage Trust insider decided to buy shares at close to current prices. Patrick Halter was the only individual insider to buy shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Granite Point Mortgage Trust is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

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. We usually like to see fairly high levels of insider ownership. From our data, it seems that Granite Point Mortgage Trust insiders own 4.1% of the company, worth about US$5.7m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Granite Point Mortgage Trust Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Granite Point Mortgage Trust insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Granite Point Mortgage Trust is showing 3 warning signs in our investment analysis, and 1 of those can't be ignored...

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 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.