Bullish Medalist Diversified REIT Insiders Loaded Up On US$528.8k Of Stock
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Medalist Diversified REIT, Inc. (NASDAQ:MDRR), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Medalist Diversified REIT
The Last 12 Months Of Insider Transactions At Medalist Diversified REIT
Notably, that recent purchase by Francis Kavanaugh is the biggest insider purchase of Medalist Diversified REIT shares that we've seen in the last year. That implies that an insider found the current price of US$6.00 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Medalist Diversified REIT insiders decided to buy shares at close to current prices.
In the last twelve months Medalist Diversified REIT insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Medalist Diversified REIT is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Medalist Diversified REIT Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Medalist Diversified REIT. Not only was there no selling that we can see, but they collectively bought US$306k worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership Of Medalist Diversified REIT
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Medalist Diversified REIT insiders own about US$4.4m worth of shares. That equates to 34% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Medalist Diversified REIT Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Medalist Diversified REIT insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for Medalist Diversified REIT (1 is a bit concerning) you should be aware of.
Of course Medalist Diversified REIT 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 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.
