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Insiders who purchased Ready Capital Corporation (NYSE:RC) earlier this year lose an additional US$4.6k as the stock sinks to US$14.57

·3-min read

Insiders who bought US$326k worth of Ready Capital Corporation's (NYSE:RC) stock at an average buy price of US$14.78 over the last year may be disappointed by the recent 5.5% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$321k which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Ready Capital

The Last 12 Months Of Insider Transactions At Ready Capital

In the last twelve months, the biggest single purchase by an insider was when Director Andrea Petro bought US$67k worth of shares at a price of US$14.18 per share. That implies that an insider found the current price of US$14.57 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Ready Capital share holders is that insiders were buying at near the current price.

Ready Capital insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

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

Insiders at Ready Capital Have Bought Stock Recently

It's good to see that Ready Capital insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$110k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership of Ready Capital

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. Insiders own 1.3% of Ready Capital shares, worth about US$15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Ready Capital Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Ready Capital we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ready Capital. Our analysis shows 3 warning signs for Ready Capital (2 don't sit too well with us!) and we strongly recommend you look at them before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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