Have NexPoint Real Estate Finance Insiders Been Selling Stock?
We'd be surprised if NexPoint Real Estate Finance, Inc. (NYSE:NREF) shareholders haven't noticed that the Director, Brian Mitts, recently sold US$173k worth of stock at US$14.51 per share. That sale was 13% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At NexPoint Real Estate Finance
Over the last year, we can see that the biggest insider purchase was by Chairman James Dondero for US$946k worth of shares, at about US$14.33 per share. That means that an insider was happy to buy shares at above the current price of US$14.00. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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.
In the last twelve months insiders purchased 67.00k shares for US$958k. But insiders sold 11.90k shares worth US$173k. In total, NexPoint Real Estate Finance insiders bought more than they sold over the last year. 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!
See our latest analysis for NexPoint Real Estate Finance
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are 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. 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 6.3% of NexPoint Real Estate Finance shares, worth about US$20m. 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 Real Estate Finance Insiders?
An insider sold NexPoint Real Estate Finance shares recently, but they didn't buy any. But we take heart from prior transactions. It's good to see insiders are shareholders. So the recent selling doesn't worry us too much. 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. Every company has risks, and we've spotted 4 warning signs for NexPoint Real Estate Finance (of which 2 don't sit too well with us!) you should know about.
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.