Yahoo Finance Bullish Chicago Atlantic Real Estate Finance Insiders Loaded Up On US$728k Of Stock \
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Chicago Atlantic Real Estate Finance
Chicago Atlantic Real Estate Finance Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Co-President Andreas Bodmeier bought US$146k worth of shares at a price of US$15.86 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$14.40). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Chicago Atlantic Real Estate Finance insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Chicago Atlantic Real Estate Finance is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Chicago Atlantic Real Estate Finance Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Chicago Atlantic Real Estate Finance. Specifically, Executive Chairman of the Board of Chicago Atlantic REIT Manager John Mazarakis bought US$132k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Does Chicago Atlantic Real Estate Finance Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Chicago Atlantic Real Estate Finance insiders own 12% of the company, worth about US$32m. 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 Chicago Atlantic Real Estate Finance Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Insiders likely see value in Chicago Atlantic Real Estate Finance shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Chicago Atlantic Real Estate Finance (of which 1 is significant!) you should know about.
But note: Chicago Atlantic 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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