Insider Buying: The Executive Vice President and Chief Investment Officer of NexPoint Real Estate Finance, Inc. (NYSE:NREF) just bought 13% more stock

Potential Nexpoint Real Estate Finance, Inc. (NYSE:NREF) Shareholders may want to note that Executive Vice President and Chief Investment Officer Matthew McGraner recently purchased $154,000 worth of stock, paying $15.44 per share. That’s a very decent buy for us and it increased his share by a solid 13%.

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The last 12 months of internal transactions at NexPoint Real Estate Finance

In particular, that recent purchase by Matthew McGraner is the largest insider purchase of NexPoint Real Estate Finance stock that we’ve seen in the past year. That implies an insider found the current price of $15.69 a share attractive. That means they have been optimistic about the company in the past, although they may have changed their minds. We always like to see insider purchases, but it’s worth noting if those purchases were made well below the current share price, as the value discount may have narrowed with the price increase. The good news for NexPoint Real Estate Finance shareholders is that an insider was buying near the current price. The only individual informant he bought in the last year was Matthew McGraner.

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

NYSE: NREF Insider Trading Volume October 8, 2022

There are always many stocks that experts buy. So if that suits your style you can check each stock one by one or you can take a look at this free list of companies. (Hint: the experts have been buying them.)

Internal ownership of NexPoint Real Estate Finance

Another way to test the alignment between a company’s leaders and other shareholders is to look at how many shares they own. Typically, the greater the insider ownership, the more likely insiders will be incentivized to build the company for the long term. It appears that the experts at NexPoint Real Estate Finance own 3.0% of the company, worth approximately $10 million. Certainly we have seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.

So what does this data suggest about NexPoint’s real estate finance experts?

It is certainly positive to see the recent insider buying. And an analysis of the transactions of the last year also gives us confidence. When combined with notable insider ownership, these factors suggest NexPoint Real Estate Finance’s experts are well aligned and may think the stock price is too low. While we like to know what’s going on with insider trading and ownership, we also make sure to consider the risks a stock faces before making any investment decisions. At Simply Wall St, we have found that NexPoint Real Estate Finance has 3 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before continuing with your analysis.

of course NexPoint Real Estate Finance may not be the best stock to buy. So you might want to see this free collection of high-quality companies.

For the purposes of this article, insiders are those individuals who report their operations to the corresponding regulatory body. We currently account for open market transactions and private disposals, but not derivative transactions.

This Simply Wall St article is of a general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell any stock, and it does not take into account your goals or financial situation. Our goal is to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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find out if NexPoint Real Estate Financing is potentially overvalued or undervalued by consulting our comprehensive analysis, which includes fair value estimates, risks and caveats, dividends, internal transactions and financial health.

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