Stock Analysis

Founder Allan Lockhart Just Bought 183% More Shares In NewRiver REIT plc (LON:NRR)

LSE:NRR
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Investors who take an interest in NewRiver REIT plc (LON:NRR) should definitely note that the Founder, Allan Lockhart, recently paid UK£0.98 per share to buy UK£219k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 183%.

See our latest analysis for NewRiver REIT

NewRiver REIT Insider Transactions Over The Last Year

In fact, the recent purchase by Allan Lockhart was the biggest purchase of NewRiver REIT shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of UK£1.07. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

Happily, we note that in the last year insiders paid UK£397k for 409.49k shares. But insiders sold 318.75k shares worth UK£308k. In the last twelve months there was more buying than selling by NewRiver REIT insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
LSE:NRR Insider Trading Volume March 17th 2021

NewRiver REIT 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.

Insider Ownership of NewRiver REIT

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. Our data isn't picking up on much insider ownership at NewRiver REIT, though insiders do hold about UK£703k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Does This Data Suggest About NewRiver REIT Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that NewRiver REIT insiders are reasonably well aligned, and optimistic for 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. Be aware that NewRiver REIT is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

Of course NewRiver REIT may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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