NexPoint Real Estate Finance Independent Director Acquires 29% More Stock \
Whilst it may not be a huge deal, we thought it was good to see that the NexPoint Real Estate Finance, Inc. (NYSE:NREF) Independent Director, Catherine Wood, recently bought US$58k worth of stock, for US$16.09 per share. That purchase might not be huge but it did increase their holding by 29%.
View our latest analysis for NexPoint Real Estate Finance
NexPoint Real Estate Finance Insider Transactions Over The Last Year
The Executive VP & Chief Investment Officer Matthew McGraner made the biggest insider purchase in the last 12 months. That single transaction was for US$154k worth of shares at a price of US$15.44 each. So it's clear an insider wanted to buy, at around the current price, which is US$15.89. 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 NexPoint Real Estate Finance insiders decided to buy shares at close to current prices.
While NexPoint Real Estate Finance 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of NexPoint Real Estate Finance
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 3.2% of NexPoint Real Estate Finance shares, worth about US$11m. 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 NexPoint Real Estate Finance Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. 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 NexPoint Real Estate Finance 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. At Simply Wall St, we've found that NexPoint Real Estate Finance has 3 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.
But note: NexPoint Real Estate Finance 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.
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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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