Francis Kavanaugh Bought 3.0% More Shares In Medalist Diversified REIT

Whilst it may not be a huge deal, we thought it was good to see that the Medalist Diversified REIT, Inc. (NASDAQ:MDRR) Chair of the Board, Francis Kavanaugh, recently bought US$79k worth of stock, for US$13.28 per share. Although the purchase is not a big one, increasing their shareholding by only 3.0%, it can be interpreted as a good sign.

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Medalist Diversified REIT Insider Transactions Over The Last Year

Notably, that recent purchase by Chair of the Board Francis Kavanaugh was not the only time they bought Medalist Diversified REIT shares this year. They previously made an even bigger purchase of US$1.8m worth of shares at a price of US$12.50 per share. That means that an insider was happy to buy shares at around the current price of US$13.49. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Medalist Diversified REIT insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid US$2.9m for 232.52k shares. But insiders sold 140.00k shares worth US$1.8m. Overall, Medalist Diversified REIT 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 Medalist Diversified REIT

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Medalist Diversified REIT

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Medalist Diversified REIT insiders own 24% of the company, worth about US$7.1m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Medalist Diversified REIT Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Medalist Diversified REIT shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 3 warning signs for Medalist Diversified REIT (1 makes us a bit uncomfortable) you should be aware of.

But note: Medalist Diversified REIT may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.