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%.
Digital Realty Trust (NYSE:DLR), a real estate investment trust (REIT), focuses on delivering customer-driven data center solutions by providing secure, reliable and cost-effective facilities that meet each customer's unique data center needs.
Insider buying during the last 30 days
Here is a table of Digital Realty's insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Purchased||Current Ownership||Increase In Shares|
|Edward Sham||SVP||Nov 15||4,225||4,225 shares||from 0 to 4,225|
|Dennis Singleton||Director||Nov 14-15||5,784||5,784 shares||from 0 to 5,784|
|Laurence Chapman||Director||Nov 1-8||20,000||74,994 shares||+36.4%|
|Joshua Mills||SVP||Nov 1||5,200||5,200 shares||from 0 to 5,200|
There have been 35,209 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of Digital Realty's insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 57,409 shares purchased and there have been 13,395 shares sold by insiders this year. The month of November has seen the most insider buying.
Digital Realty reported the third-quarter financial results on October 29 with the following highlights:
|Net income||$138.9 million|
(Source: Earnings presentation)
On October 29, Digital Realty revised its 2013 FFO per share outlook to $4.60-$4.62 down from $4.73-$4.82 previously, and revised its 2013 core FFO per share outlook to $4.65-$4.67 down from the prior range of $4.74-$4.83.
(Source: Earnings presentation)
Digital Realty has the second-lowest P/S ratio among these three companies.
Here is a table of these competitors' insider-trading activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only Digital Realty has seen intensive insider buying during the last 30 days.
There have been four different insiders buying Digital Realty and there have not been any insiders selling Digital Realty during the last 30 days. All four of these insiders increased their holdings by more than 10%. Digital Realty has an insider ownership of 0.10%.
There are 11 analyst buy ratings, eight neutral ratings, and zero sell ratings with an average price target of $56.63. Digital Realty has a book value of $28.37 per share and the stock has a dividend yield of 6.48%. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in DLR over 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.