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NexPoint Diversified Real Estate Trust (NYSE:NXDT) shareholders (or potential shareholders) will be happy to see that insider Dustin Norris recently bought a whopping US$1.3m worth of stock, at a price of US$3.58. That purchase boosted their holding by 177%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
We've discovered 4 warning signs about NexPoint Diversified Real Estate Trust. View them for free.
The Last 12 Months Of Insider Transactions At NexPoint Diversified Real Estate Trust
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 means that an insider was happy to buy shares at above the current price of US$3.75. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months NexPoint Diversified Real Estate Trust insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for NexPoint Diversified Real Estate Trust
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.
Does NexPoint Diversified Real Estate Trust 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 14% of NexPoint Diversified Real Estate Trust shares, worth about US$22m. 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 NexPoint Diversified Real Estate Trust Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in NexPoint Diversified Real Estate Trust shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NexPoint Diversified Real Estate Trust. Our analysis shows 4 warning signs for NexPoint Diversified Real Estate Trust (3 make us uncomfortable!) and we strongly recommend you look at these before investing.