It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in NexPoint Diversified Real Estate Trust’s (NYSE:NXDT) case, it’s fantastic news for shareholders.
Although we don’t think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for NexPoint Diversified Real Estate Trust
In the last twelve months, the biggest single purchase by an insider was when Chairman & President James Dondero bought US$313k worth of shares at a price of US$5.09 per share. So it’s clear an insider wanted to buy, at around the current price, which is US$5.42. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. The good news for NexPoint Diversified Real Estate Trust share holders is that insiders were buying at near the current price.
While NexPoint Diversified Real Estate Trust insiders bought shares during the last year, they didn’t sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty…
