Seeking Alpha
What is your profession? ×
Long/short equity, insider ownership
Profile| Send Message|
( followers)

The Vanguard REIT Index ETF (NYSEARCA:VNQ) was trading as low as $19.95 in March 2009. The index is currently trading at $64.79 or 224.8% above the low made in March 2009.

(click to enlarge)

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:

  1. The stock is purchased by three or more insiders within one month.

  2. The stock is sold by no insiders in the month of intensive purchasing.

  3. At least two purchasers increase their holdings by more than 10%.

Annaly Capital Management (NYSE:NLY) owns, manages, and finances a portfolio of real estate related investments in United States. Annaly has underperformed the Vanguard REIT Index this year.

(click to enlarge)

Insider buying by insider (last 30 days)

  • Wellington Denahan purchased 181,818 shares on August 20-21 and currently holds 1,195,081 shares or 0.1% of the company. Wellington Denahan is the Chairman and Chief Executive Officer of Annaly.
  • Kristopher Konrad purchased 17,000 shares on August 13 and currently holds 213,035 shares or less than 0.1% of the company. Kristopher Konrad is Co-CIO of the company.
  • John Schaefer purchased 10,000 shares on August 12 and currently holds 35,000 shares or less than 0.1% of the company. John Schaefer serves as a director of the company.

Insider buying by calendar month

Here is a table of Annaly Capital Management's insider-trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
August 2013208,8180
July 201300
June 201300
May 201325,0000
April 201300
March 201300

There have been 233,818 shares purchased and there have been zero shares sold by the insiders since March 2013.


The company reported the second-quarter financial results on August 7 with the following highlights:

Net income$1.6 billion
Adjusted net income$460.6 million
Book value$13.03 per share


Annaly Capital Management's competitors include Capstead Mortgage (NYSE:CMO), Impac Mortgage Holdings (NYSEMKT:IMH) and Redwood Trust (NYSE:RWT). Here is a table comparing these four companies.

Market Cap:10.36B1.09B86.34M1.40B
Qtrly Rev Growth (yoy):N/A-0.31-0.052.25
Gross Margin:
Operating Margin:0.940.920.210.70
Net Income:3.37B98.10M10.69M201.75M
PEG (5 yr expected):1.861.07N/A2.59

Annaly Capital Management has the second lowest P/S ratio among these four companies. Capstead Mortgage and Impac Mortgage Holdings have seen one insider buy transaction during the past 30 days.


There have been three different insiders buying Annaly Capital Management and there have not been any insiders selling Annaly Capital Management during the last 30 days. Two out of these three insiders increased their holdings by more than 10%. Annaly has an insider ownership of 0.20%. There are three analyst buy ratings, 14 neutral ratings and two sell ratings with an average target price of $12.28. Annaly has a book value of $13.03 per share and the stock has a dividend yield of 14.63%. The stock is currently trading below the book value, which could be a good entry point for the stock.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.