When insiders accumulate a stock intensively, the stock can be expected to outperform the market during the next six months. Insiders tend to buy more often than usual before large price increases and to sell more than usual before price decreases.
In this article, I will feature one company 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%.
STAG Industrial (STAG) is a self-administered and self-managed full-service real estate company focused on the acquisition, ownership and management of single tenant industrial properties throughout the United States.
Insider buying by insider (last 30 days)
- Francis Jacoby purchased 1,000 preferred shares on August 22 and currently controls 1,000 preferred shares or less than 0.1% of the company. Francis Jacoby serves as a director of the company.
- Benjamin Butcher purchased 1,000 shares on August 16 and 1,000 preferred shares on August 9. Benjamin Butcher currently holds 95,242 shares and 2,000 preferred shares or 0.2% of the company. Benjamin Butcher serves as Chief Executive Officer, President and Chairman of the Board of Directors.
- Jeffrey Furber purchased 5,000 shares on August 15 and currently holds 30,228 shares or less than 0.1% of the company. Jeffrey Furber serves as a director of the company.
Insider buying by calendar month
Here is a table of STAG Industrial's insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 18,370 shares purchased and there have been zero shares sold by the insiders this year.
STAG reported the second-quarter financial results on August 5 with the following highlights:
|Cash Net Operating Income||$27.1 million|
|Core Funds From Operations||$16.0 million|
|Adjusted Funds From Operations||$15.1 million|
|Net loss||$2.4 million|
STAG Industrial has the highest P/S ratio among these three companies. First Industrial Realty Trust has seen two insider buy transactions and one insider sell transaction this year. Monmouth Real Estate Investment Corp. has seen 11 insider buy transactions and one insider sell transaction this year.
There have been three different insiders buying STAG and there have not been any insiders selling STAG during the last 30 days. Two out of these three insiders increased their holdings by more than 10%. STAG has an insider ownership of 0.40%. There are five analyst buy ratings, five neutral ratings and zero sell ratings with an average target price of $23.06. STAG has a book value of $10.49 per share and the stock has a dividend yield of 5.95%. I have a cautiously bullish bias for the stock currently based on the insider buying.