Trade Alert: Director Of NexPoint Diversified Real Estate Trust Brian Mitts Has Sold Stock

Investors may wish to note that the Director of NexPoint Diversified Real Estate Trust, Brian Mitts, recently netted US$60k from selling stock, receiving an average price of US$4.18. While that isn't a lot of money, it was a substantial 53% of their holding, so certainly isn't a good sign.

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The Last 12 Months Of Insider Transactions At NexPoint Diversified Real Estate Trust

The Executive Vice President Dustin Norris made the biggest insider purchase in the last 12 months. That single transaction was for US$1.3m worth of shares at a price of US$3.85 each. That implies that an insider found the current price of US$3.88 per share to be enticing. 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. Happily, the NexPoint Diversified Real Estate Trust insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid US$3.1m for 838.89k shares. But they sold 14.45k shares for US$60k. In the last twelve months there was more buying than selling by NexPoint Diversified Real Estate Trust insiders. 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!

See our latest analysis for NexPoint Diversified Real Estate Trust

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of NexPoint Diversified Real Estate Trust

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. NexPoint Diversified Real Estate Trust insiders own about US$33m worth of shares. That equates to 17% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

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

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Insiders own shares in NexPoint Diversified Real Estate Trust and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 3 warning signs for NexPoint Diversified Real Estate Trust (2 don't sit too well with us) you should be aware of.

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.