James D. Dondero, the President of NexPoint Diversified Real Estate Trust (NYSE:NXDT), has made a substantial purchase of the company's common stock, according to recent filings with the Securities and Exchange Commission. Dondero acquired shares on two separate occasions, with the total value of the transactions exceeding $130,000.
On June 27, 2024, Dondero purchased 15,544 shares of NexPoint Diversified Real Estate Trust at a price of $5.19 per share. The following day, he added another 9,832 shares to his holdings, this time at a higher price of $5.44 per share. These transactions indicate a strong commitment from the executive, as they significantly increase his stake in the company.
The total number of shares acquired across both days amounted to a combined value of approximately $134,159, showcasing a notable investment by Dondero in the trust. The price per share for these purchases ranged between $5.19 and $5.44, reflecting the market's fluctuations during the period of the transactions.
Following these acquisitions, Dondero's direct and indirect holdings in NexPoint Diversified Real Estate Trust have increased, although he disclaims beneficial ownership of certain shares, except to the extent of his pecuniary interest therein. This disclaimer applies to shares held by The Dugaboy Investment Trust, several partnerships, and custodial accounts for his children, as detailed in the footnotes of the SEC filing.
James D. Dondero's role as President and his recent stock purchases could be interpreted as a positive signal to investors regarding his confidence in the trust's future performance. As with all investments, market participants are likely to keep a close watch on insider transactions such as these for insights into the company's potential trajectory.
Investors interested in NexPoint Diversified Real Estate Trust can track its performance on the New York Stock Exchange under the ticker symbol NXDT.
InvestingPro Insights
In light of James D. Dondero's recent investment in NexPoint Diversified Real Estate Trust, investors may find additional context through real-time data and insights provided by InvestingPro. The company, with a market capitalization of $219.27 million, has shown a significant return over the last week, with a 12.63% price total return, which aligns with Dondero's confidence in the company's stock. An InvestingPro Tip highlights that NXDT pays a significant dividend to shareholders, boasting a dividend yield of 10.85%, which is particularly attractive for income-focused investors.
Despite recent positive price movements, the trust's revenue has seen a downturn, with a decline of 44.93% over the last twelve months as of Q1 2024. Moreover, NexPoint Diversified Real Estate Trust has not been profitable over the same period, which is reflected in its negative P/E ratio of -1.61. This could be an area of concern for potential investors, as indicated by another InvestingPro Tip that points out the stock's poor free cash flow yield.
For those looking to delve deeper into the financial health and future prospects of NexPoint Diversified Real Estate Trust, there are additional InvestingPro Tips available, such as the company's moderate level of debt and its history of maintaining dividend payments for 18 consecutive years. To uncover more insights and tips that could guide investment decisions, interested parties are encouraged to use the promo code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro. With 6 more detailed tips available, investors can gain a comprehensive understanding of NXDT's financial landscape and make informed decisions.
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