James Dondero buys $313k in shares of NexPoint Diversified Real Estate Trust By Investing.com
James Dondero, chief executive officer of NexPoint Diversified Real Estate Trust (NYSE:NXDT), has recently purchased significant shares of the company’s stock, according to recent filings. Dondero acquired $313,150 worth of stock, at prices ranging from $4.93 to $5.09 per share.
The transaction, which took place on June 24 and June 25, saw Dondero buy 16,489 shares at $4.93 each and another 45,552 shares at $5.09 each. Following this transaction, Dondero’s direct and indirect investments in NexPoint Diversified Real Estate Trust increased significantly.
James Dondero, who serves in many roles including as an executive and director, is known for his active management style and strategic investments. The latest purchase supports his continued commitment to the company and may be seen as a sign of his confidence in its future prospects.
Investors often monitor the buying and selling activities of company executives as these transactions can provide insight into management’s view of the company’s valuation and future performance. Dondero’s recent stock purchase represents a significant investment and may be of particular interest to current and potential shareholders.
It should be noted that the shares acquired through The Dugaboy Investment Trust, which Dondero benefits from, and other entities he indirectly controls. Dondero denied beneficial ownership of these shares, except for a measure of his capital gain.
Detailed ownership statements and disclaimers are provided in the footnotes of the SEC filing, which show the complex structure of the holdings, which include employee benefit plans, investment trusts, and custodial accounts.
As of the filing date, Dondero’s total ownership of NexPoint Diversified Real Estate Trust, both direct and indirect, reflects his significant involvement and participation in the company’s success. Transactions are now part of the public record, providing transparency to the market and ensuring that investors receive the same information when making investment decisions.
InvestingPro Insights
Considering James Dondero’s recent stock purchase in NexPoint Diversified Real Estate Trust (NYSE:NXDT), investors can get more context from the real-time data and insights provided by InvestingPro. According to the latest metrics, NXDT’s market capitalization comes to an estimated $202.22 billion, which may indicate a small, very large area in the real estate investment trust (REIT) market. Despite a challenging year reflected in a price decline of more than 50%, the company maintains a significant yield of 11.76%, from the last twelve months leading to Q1 2024. This high profit underlines the company’s commitment to shareholder returns, evidenced by 18 consecutive years of dividend payments— an InvestingPro tip that may be particularly comforting for income-oriented investors.
However, it is not all good news. The company is currently unprofitable, with a negative P/E ratio of 1.61, and has experienced a nearly 45% decline in revenue over the same period. These statistics suggest that while the dividend is attractive, it may not be sustainable in the long run if the company is unable to reverse its negative earnings trend. Additionally, InvestingPro Tip points out that NXDT’s short-term liabilities exceed its liquid assets, which could pose a liquidity risk in the near future.
For investors interested in Dondero’s latest investment and considering a deeper dive into NXDT, InvestingPro offers detailed analysis and tips. Currently, there are 9 additional InvestingPro Tips available that can provide additional guidance on stock potential. To access this information, investors can visit and use the coupon code PRONEWS24 for an additional 10% discount on Pro and Pro+ annual or bi-annual subscriptions.
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