Insider Stock Buying Reaches US$804.0k On KKR Real Estate Finance Trust
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in KKR Real Estate Finance Trust Inc.'s (NYSE:KREF) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for KKR Real Estate Finance Trust
KKR Real Estate Finance Trust Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Matthew Salem bought US$268k worth of shares at a price of US$10.70 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$9.99). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While KKR Real Estate Finance Trust insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
KKR Real Estate Finance Trust is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At KKR Real Estate Finance Trust Have Bought Stock Recently
Over the last quarter, KKR Real Estate Finance Trust insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$350k worth of shares. That shows some optimism about the company's future.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. KKR Real Estate Finance Trust insiders own about US$10m worth of shares. That equates to 1.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.