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A NexPoint Real Estate Finance, Inc. (NYSE:NREF) insider increased their holdings by 93% last year

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Insiders were net buyers of NexPoint Real Estate Finance, Inc.'s (NYSE:NREF ) stock during the past year. That is, insiders bought more stock than they sold.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for NexPoint Real Estate Finance

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

The Independent Director Catherine Wood made the biggest insider purchase in the last 12 months. That single transaction was for US$56k worth of shares at a price of US$18.56 each. Even though the purchase was made at a significantly lower price than the recent price (US$20.90), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Catherine Wood bought 6.23k shares over the last 12 months at an average price of US$17.31. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

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).

Does NexPoint Real Estate Finance 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.8% of NexPoint Real Estate Finance shares, worth about US$8.2m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At NexPoint Real Estate Finance Tell Us?

It doesn't really mean much that no insider has traded NexPoint Real Estate Finance shares in the last quarter. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if NexPoint Real Estate Finance insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NexPoint Real Estate Finance. For example, NexPoint Real Estate Finance has 3 warning signs (and 1 which is potentially serious) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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