Insider Stock Buying Reaches US$804.0k On KKR Real Estate Finance Trust
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in KKR Real Estate Finance Trust Inc.'s (NYSE:KREF) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for KKR Real Estate Finance Trust
KKR Real Estate Finance Trust Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Matthew Salem bought US$268k worth of shares at a price of US$10.70 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$9.99). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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 KKR Real Estate Finance Trust insiders bought shares during the last year, they didn't sell. 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!
KKR Real Estate Finance Trust is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At KKR Real Estate Finance Trust Have Bought Stock Recently
Over the last quarter, KKR Real Estate Finance Trust insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$350k worth of shares. That shows some optimism about the company's future.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. KKR Real Estate Finance Trust insiders own about US$10m worth of shares. That equates to 1.5% of the company. 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 Does This Data Suggest About KKR Real Estate Finance Trust Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of KKR Real Estate Finance Trust we think they are probably pretty confident of a bright future. 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. At Simply Wall St, we've found that KKR Real Estate Finance Trust has 2 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
