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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in KKR Real Estate Finance Trust Inc.'s (NYSE:KREF) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
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$253k worth of shares at a price of US$9.72 per share. Even though the purchase was made at a significantly lower price than the recent price (US$11.50), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
KKR Real Estate Finance Trust is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does KKR Real Estate Finance Trust Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that KKR Real Estate Finance Trust insiders own 1.7% of the company, worth about US$14m. 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 Do The KKR Real Estate Finance Trust Insider Transactions Indicate?
It doesn't really mean much that no insider has traded KKR Real Estate Finance Trust shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in KKR Real Estate Finance Trust and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for KKR Real Estate Finance Trust (1 doesn't sit too well with us!) that we believe deserve your full attention.