Yahoo Finance Dustin Norris Bought 78% More Shares In NexPoint Diversified Real Estate Trust
Investors who take an interest in NexPoint Diversified Real Estate Trust (NYSE:NXDT) should definitely note that the Executive Vice President, Dustin Norris, recently paid US$4.73 per share to buy US$300k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 78%, potentially signalling some real optimism.
Check out our latest analysis for NexPoint Diversified Real Estate Trust
NexPoint Diversified Real Estate Trust Insider Transactions Over The Last Year
In fact, the recent purchase by Dustin Norris was the biggest purchase of NexPoint Diversified Real Estate Trust shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$5.10 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the NexPoint Diversified Real Estate Trust insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders paid US$887k for 173.22k shares. On the other hand they divested 1.13k shares, for US$12k. Overall, NexPoint Diversified Real Estate Trust insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
NexPoint Diversified Real Estate Trust is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of NexPoint Diversified Real Estate Trust
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. NexPoint Diversified Real Estate Trust insiders own about US$27m worth of shares. That equates to 14% of the company. 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 Does This Data Suggest About NexPoint Diversified Real Estate Trust Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest NexPoint Diversified Real Estate Trust insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of 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. For example, NexPoint Diversified Real Estate Trust has 3 warning signs (and 2 which make us uncomfortable) we think you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.
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