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nsiders who bought $2.98 million of NexPoint Diversified Real Estate Trust (NYSE:NXDT) shares at an average price of $3.67 over the past year now face an 11 % drop in value, leaving their holdings worth only $2.59 million. This decline is a disappointment for those who expected their investment to grow.

    The largest insider purchase in the last 12 months was made by Executive Vice President Dustin Norris, who acquired $1.3 million of shares at roughly $3.85 each—above the current market price of $3.18. His willingness to pay a premium suggests he viewed the stock as attractive at that time. In general, when insiders buy at or above the prevailing price, it can signal confidence in the company’s prospects.

    Over the past year, NexPoint insiders have not sold any shares. Their cumulative ownership stands at 18 % of the outstanding shares, valued at about $26 million. High insider ownership often indicates that executives are aligned with shareholders and may be motivated to build long‑term value.

    Although there have been no insider transactions in the last three months, the overall pattern of buying and the absence of selling provide a neutral to positive view of insider sentiment. However, a deeper look at the company’s fundamentals reveals three warning signs—two of which should not be ignored—before making any investment decision.

    NexPoint’s market cap is below $10 billion, which keeps it in the realm of smaller, potentially more volatile stocks. Investors should weigh the risks highlighted by the warning signs against the potential upside suggested by insider activity.

    For those interested in other companies with notable insider buying, a free list of under‑the‑radar firms is available. It can serve as a starting point for further research.

    The analysis presented here is based on publicly reported insider transactions and does not include derivative or indirect holdings. It is intended for informational purposes only and does not constitute financial advice. NexPoint’s valuation, dividend policy, and risk profile are summarized in the accompanying detailed report, which also offers fair‑value estimates and a review of the company’s financial condition.

    If you have questions or feedback about this analysis, please contact us directly or email editorial‑[email protected]. This article is provided by Simply Wall St and reflects historical data and analyst forecasts using an unbiased methodology. It does not represent a recommendation to buy or sell any security.