insider trading volume

Insider Buying: The NexPoint Real Estate Finance, Inc. (NYSE:NREF) Executive VP & Chief Investment Officer Just Bought 13% More Shares

Beth McCandry

potential NextPoint Real Estate Finance, Inc. (NYSE:NREF) shareholders may wish to note that the Executive VP & Chief Investment Officer, Matthew McGraner, recently bought US$154k worth of stock, paying US$15.44 for each share. That’s a very decent purchase to our minds and it grew their holding by a solid 13%.

See our latest analysis for NexPoint Real Estate Finance

The Last 12 Months Of Insider Transactions At NexPoint Real Estate Finance

Notably, that recent purchase by Matthew McGraner is the biggest insider purchase of NexPoint Real Estate Finance shares that we’ve seen in the last year. That implies that an insider found the current price of US$15.69 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. The good news for NexPoint Real Estate Finance share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Matthew McGraner.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:NREF Insider Trading Volume October 8th 2022

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).

Insider Ownership Of NexPoint Real Estate Finance

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 incentivized to build the company for the long term. It appears that NexPoint Real Estate Finance insiders own 3.0% of the company, worth about US$10m. 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?

It’s certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest NexPoint Real Estate Finance insiders are well aligned, and that they may think the share price is too low. 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. At Simply Wall St, we’ve found that NexPoint Real Estate Finance has 3 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.

Of course NexPoint Real Estate Finance 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, 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.

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