Starwood CEO Sternlicht Buys $14.7 Million of STWD Stock

Barry Sternlicht, chief executive and chairman of Starwood Property Trust (STWD), bought 1,245,000 shares of common stock on Nov. 11 and Nov. 12, worth about $14.7 million, according to a Form 4 filed Nov. 13. Director Jonathan Pollack filed his own purchases the same day. Together the two insiders reported four purchases totaling 1,414,800 shares and about $16.7 million.

Sternlicht's first purchase, on Nov. 11, was 830,000 shares at a weighted average price of $11.9146, in trades from $11.67 to $12. That line was valued at $9,889,118. On Nov. 12 he added 415,000 shares at a weighted average price of $11.5869, in trades from $11.43 to $11.66, worth about $4.8 million. Both lines were reported as indirect holdings.

Before the first purchase, Sternlicht's indirect holding stood at 253,421 shares. After the Nov. 12 purchase it was 1,498,421 shares, a 491.3% increase.

Pollack bought 169,800 shares across two reported transactions, both on Nov. 11, for about $2.0 million. According to his Form 4, 84,800 shares went into an indirect holding at a weighted average price of $11.8795, in trades from $11.865 to $11.88. That holding was zero before the purchase. A further 85,000 shares were bought at a weighted average price of $11.8361, in trades from $11.82 to $11.84, and added to his direct holding. The direct holding rose from 126,795 shares to 211,795, an increase of 67%.

The four lines together span prices from $11.43 to $12 a share. None of the purchases was marked as made under a Rule 10b5-1 plan.

A Form 4 is the report that officers, directors and holders of more than 10% of a company's stock must file within two business days of a trade in its shares. These filings carry transaction code P, which marks an open-market or private purchase paid for by the insider, as opposed to a grant, an option exercise or a purchase under an employee plan. AlphaScala explains the code on its Form 4 code P page.

The Nov. 11 purchases by both men were filed two days later, or two weekdays. Sternlicht's Nov. 12 purchase was filed one day later. More background on the company is on the STWD stock page.

No open-market purchases or sales by STWD insiders were filed between July 23 and Nov. 11, the day the first of these purchases was made. The Form 4s filed Nov. 13 cover the purchases made on Nov. 11 and Nov. 12.