Potential Medalist Diversified REIT, Inc. (NASDAQ:MDRR) shareholders may wish to note that the Chair of the Board, Francis Kavanaugh, recently bought US$257k worth of stock, paying US$12.29 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 10%.

Check out our latest analysis for Medalist Diversified REIT

The Last 12 Months Of Insider Transactions At Medalist Diversified REIT

In fact, the recent purchase by Francis Kavanaugh was the biggest purchase of Medalist Diversified REIT shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$12.36. Of course they may have changed their mind. But this suggests they are optimistic. 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. Happily, the Medalist Diversified REIT insiders decided to buy shares at close to current prices.

In the last twelve months Medalist Diversified REIT insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Medalist Diversified REIT 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 Medalist Diversified REIT Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Medalist Diversified REIT insiders own about US$6.4m worth of shares. That equates to 38% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Medalist Diversified REIT Tell Us?

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. 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. While conducting our analysis, we found that Medalist Diversified REIT has 2 warning signs and it would be unwise to ignore these.

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.