Matt McGraner, Executive Vice President, Chief Investment Officer, and Secretary of NexPoint Diversified Real Estate Trust (NYSE:NXDT), has purchased additional shares of the company’s stock, according to a recent SEC filing. McGraner acquired 5,000 shares at a price of $4.74 per share, totaling $23,700.
The transaction, dated June 21, 2024, increases McGraner's direct holdings to 63,965 shares of NexPoint Diversified Real Estate Trust, as detailed in the SEC Form 4 filing. The report also indicates that McGraner has an indirect ownership of 707 shares through a 401(k) Plan.
The purchase reflects a vote of confidence from McGraner in the future of the real estate investment trust, which is based in Dallas, Texas. NexPoint Diversified Real Estate Trust, formerly known as NexPoint Strategic Opportunities Fund, has a history of name changes, with its most recent transition occurring in 2018.
Investors often monitor insider buying and selling as it can provide insights into the executive’s views on the company's current valuation and future prospects. McGraner's role as an officer of the company suggests that his investment decisions are based on a thorough understanding of the company's operations and potential.
The filing was signed by attorney-in-fact Brian Mitts on behalf of Matt McGraner on June 24, 2024. As the market processes the significance of this insider purchase, investors and analysts will be watching NexPoint Diversified Real Estate Trust's performance closely.
InvestingPro Insights
As NexPoint Diversified Real Estate Trust's (NYSE:NXDT) Executive Vice President, Chief Investment Officer, and Secretary Matt McGraner increases his stake in the company, investors are taking note of the potential signals this insider activity might suggest. In light of this development, key metrics and insights from InvestingPro provide a deeper understanding of NXDT's current financial landscape.
The company currently holds a market capitalization of $192.7 million, indicating its size within the real estate investment trust market. Despite recent insider purchases, NXDT's price-to-earnings (P/E) ratio stands at -1.61, reflecting concerns over profitability, as the company has not been profitable over the last twelve months. This is further corroborated by a significant decline in revenue, with a 44.93% decrease in the last twelve months as of Q1 2024, and a quarterly drop of 21.22% in Q1 2024.
One of the notable InvestingPro Tips highlights NXDT's commitment to returning value to shareholders, with a substantial dividend yield of 12.35%, and a consistent record of maintaining dividend payments for 18 consecutive years. This could be an attractive point for income-focused investors, especially in a volatile market. However, it's important to consider that the company's short-term obligations exceed its liquid assets, which could raise questions about its ability to sustain such dividend payments in the face of liquidity constraints.
For investors intrigued by NXDT's insider buying and dividend history, additional InvestingPro Tips available at https://www.investing.com/pro/NXDT include insights on the company's moderate level of debt and the significant price decrease over various time frames. With the recent price per share at $4.86, the stock is currently trading at 37.64% of its 52-week high, indicating a notable decline that could either signal a buying opportunity or a warning, depending on one's investment strategy.
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