The Vanguard REIT Index ETF (VNQ) was trading as low as $19.95 in March 2009. The index is currently trading at $65.07 or 226.2% above the low made in March 2009.
In this article, I will feature one REIT that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:
The stock is purchased by three or more insiders within one month.
The stock is sold by no insiders in the month of intensive purchasing.
- At least two purchasers increase their holdings by more than 10%.
Gladstone Commercial Corporation (GOOD) operates as a real estate investment trust (REIT) in the United States. It engages in investing in and owning net leased industrial and commercial real properties, and making long-term industrial and commercial mortgage loans.
Gladstone bottomed at $5.36 in February 2009 and is currently trading at $17.89 or 233.8% above the low made in February 2009. Gladstone's share performance since February 2009 is in line with the Vanguard REIT Index's share performance.
Insider buying by insider (last 30 days)
- John Reilly purchased 7,681 preferred shares on August 7-16 and currently holds 19,581 preferred shares or 0.2% of the company. John Reilly serves as a director of the company.
- Michael Licalsi purchased 1,000 shares on August 16 and currently holds 2,304 shares or less than 0.1% of the company. Michael Licalsi has been the company's Internal Counsel since October 2009.
- Robert Cutlip purchased 2,000 shares on August 2-13 and currently holds 7,500 shares or less than 0.1% of the company. Robert Cutlip serves as President and Senior Managing Director of Gladstone Commercial.
Insider buying by calendar month
Here is a table of Gladstone's insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 14,981 shares purchased and there have been zero shares sold by the insiders since March 2013.
The company reported the second-quarter financial results on July 30 with the following highlights:
|Funds from operations||$4.6 million|
|Net loss||$0.6 million|
|Net debt||$404.9 million|
Gladstone has the lowest P/S ratio among these three companies. Monmouth Real Estate Investment Corp. has seen two insider buy transactions this month and PS Business Parks has seen three insider buy transactions this month.
There have been three different insiders buying Gladstone and there have not been any insiders selling Gladstone during the last 30 days. All three of these insiders increased their holdings by more than 10%. There is one analyst buy rating, one neutral rating and zero sell ratings with an average target price of $20.50. Gladstone has a book value of $13.44 per share and the stock has a dividend yield of 8.68%. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.