Lead Independent Director of Chicago Atlantic REIT Manager of Chicago Atlantic Real Estate Finance Jason Papastavrou Buys 46% More Shares

Investors who take an interest in Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI) should definitely note that the Lead Independent Director of Chicago Atlantic REIT Manager, Jason Papastavrou, recently paid US$12.65 per share to buy US$228k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 46%.

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The Last 12 Months Of Insider Transactions At Chicago Atlantic Real Estate Finance

In fact, the recent purchase by Jason Papastavrou was the biggest purchase of Chicago Atlantic Real Estate Finance 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 US$13.22. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Chicago Atlantic Real Estate Finance share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 57.20k shares for US$727k. On the other hand they divested 2.78k shares, for US$44k. Overall, Chicago Atlantic Real Estate Finance insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Chicago Atlantic Real Estate Finance

Chicago Atlantic Real Estate Finance is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Chicago Atlantic Real Estate Finance

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Chicago Atlantic Real Estate Finance insiders own 14% of the company, worth about US$37m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Chicago Atlantic Real Estate Finance Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Chicago Atlantic Real Estate Finance shares, given these transactions (along with notable insider ownership of the company). 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. In terms of investment risks, we've identified 2 warning signs with Chicago Atlantic Real Estate Finance and understanding them should be part of your investment process.

Of course Chicago Atlantic Real Estate Finance 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.