NexPoint Diversified Real Estate Trust (NYSE:NXDT) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 11% decline in the stock price. After accounting for the recent loss, the US$2.98m worth of shares they purchased is now worth US$3.57m, suggesting a good return on their investment.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
NexPoint Diversified Real Estate Trust Insider Transactions Over The Last Year
The Executive Vice President Dustin Norris made the biggest insider purchase in the last 12 months. That single transaction was for US$1.3m worth of shares at a price of US$3.85 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.39. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
NexPoint Diversified Real Estate Trust insiders may have bought shares in the last year, but they didn't sell any. 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!
View our latest analysis for NexPoint Diversified Real Estate Trust
NexPoint Diversified Real Estate Trust is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At NexPoint Diversified Real Estate Trust Have Bought Stock Recently
Over the last quarter, NexPoint Diversified Real Estate Trust insiders have spent a meaningful amount on shares. In total, insiders bought US$972k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
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. We usually like to see fairly high levels of insider ownership. NexPoint Diversified Real Estate Trust insiders own about US$37m worth of shares. That equates to 18% 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 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. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in NexPoint Diversified Real Estate Trust shares, given these transactions (along with notable insider ownership of the company). 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. Case in point: We've spotted 3 warning signs for NexPoint Diversified Real Estate Trust you should be aware of.
Of course NexPoint Diversified Real Estate Trust may not be the best stock to buy. So you may wish to see this free collection of high quality 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.