Investors who take an interest in Ready Capital Corporation (NYSE:RC) should definitely note that the Chairman & CEO, Thomas Capasse, recently paid US$10.17 per share to buy US$366k worth of the stock. That’s a very decent purchase to our minds and it grew their holding by a solid 13%.
The Last 12 Months Of Insider Transactions At Ready Capital
Notably, that recent purchase by Thomas Capasse is the biggest insider purchase of Ready Capital shares that we’ve seen in the last year. That means that an insider was happy to buy shares at above the current price of US$5.72. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 79.50k shares for US$804k. But they sold 6000 shares for US$88k. In the last twelve months there was more buying than selling by Ready Capital insiders. You can see a visual depiction of insider transactions (by 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Ready Capital
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Based on our data, Ready Capital insiders have about 1.5% of the stock, worth approximately US$4.7m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Ready Capital Tell Us?
It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Ready Capital insiders are reasonably well aligned, and optimistic for the 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. When we did our research, we found 4 warning signs for Ready Capital (1 is significant!) that we believe deserve your full attention.
Of course Ready Capital 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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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