Insider Buys Additional US$147k In NexPoint Diversified Real Estate Trust Stock \
Investors who take an interest in NexPoint Diversified Real Estate Trust (NYSE:NXDT) should definitely note that the Independent Director, Catherine Wood, recently paid US$11.78 per share to buy US$147k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
Check out our latest analysis for NexPoint Diversified Real Estate Trust
NexPoint Diversified Real Estate Trust Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chairman & President James Dondero for US$987k worth of shares, at about US$14.95 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$11.43). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While NexPoint Diversified Real Estate Trust insiders bought shares during the last year, they didn't sell. 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!
NexPoint Diversified Real Estate Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 13% of NexPoint Diversified Real Estate Trust shares, worth about US$57m. 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 NexPoint Diversified Real Estate Trust Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in NexPoint Diversified Real Estate Trust shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that NexPoint Diversified Real Estate Trust is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...
Of course NexPoint Diversified Real Estate Trust 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.
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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.
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