Yahoo Finance NexPoint Real Estate Finance Insider Ups Holding By 29% During Year
From what we can see, insiders were net buyers in NexPoint Real Estate Finance, Inc.'s (NYSE:NREF ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for NexPoint Real Estate Finance
NexPoint Real Estate Finance Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Catherine Wood for US$58k worth of shares, at about US$16.09 per share. That means that even when the share price was higher than US$14.08 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Catherine Wood.
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 Real Estate Finance is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does NexPoint Real Estate Finance 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. NexPoint Real Estate Finance insiders own about US$14m worth of shares. That equates to 4.3% of the company. 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 Do The NexPoint Real Estate Finance Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in NexPoint Real Estate Finance and their transactions don't cause us concern. 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 3 warning signs for NexPoint Real Estate Finance you should be aware of, and 2 of them are potentially serious.
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.
