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Trade Alert: The Independent Director Of Ready Capital Corporation (NYSE:RC), Gilbert Nathan, Has Just Spent US$97k Buying 17% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Ready Capital Corporation (NYSE:RC) Independent Director, Gilbert Nathan, recently bought US$97k worth of stock, for US$11.00 per share. That purchase might not be huge but it did increase their holding by 17%.

Check out our latest analysis for Ready Capital

Ready Capital Insider Transactions Over The Last Year

In fact, the recent purchase by Gilbert Nathan was the biggest purchase of Ready Capital shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$10.30 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Gilbert Nathan was the only individual insider to buy shares in the last twelve months.

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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!

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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Ready Capital insiders own about US$11m worth of shares. That equates to 1.0% of the company. 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 Ready Capital Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Ready Capital shares, given these transactions (along with notable insider ownership of the company). 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. Every company has risks, and we've spotted 3 warning signs for Ready Capital (of which 1 is concerning!) you should know about.

But note: Ready Capital may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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