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Insider Buying: The NewRiver REIT plc (LON:NRR) CFO & Director Just Bought 1,144% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the NewRiver REIT plc (LON:NRR) CFO & Director, William Hobman, recently bought UK£50k worth of stock, for UK£0.83 per share. While that isn't the hugest buy, it actually boosted their shareholding by 1,144%, which is good to see.

See our latest analysis for NewRiver REIT

The Last 12 Months Of Insider Transactions At NewRiver REIT

Over the last year, we can see that the biggest insider purchase was by Founder Allan Lockhart for UK£219k worth of shares, at about UK£0.98 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.79). 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. 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.

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In the last twelve months insiders purchased 470.13k shares for UK£447k. But insiders sold 318.75k shares worth UK£308k. Overall, NewRiver REIT insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

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).

Does NewRiver REIT Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From what we can see in our data, insiders own only about UK£646k worth of NewRiver REIT shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Do The NewRiver REIT Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on NewRiver REIT stock. 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. Case in point: We've spotted 2 warning signs for NewRiver REIT you should be aware of.

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, but not derivative transactions.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.