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%.
American Realty Capital Properties (NASDAQ:ARCP) owns and acquires single tenant, freestanding commercial real estate that is net leased on a medium-term basis, primarily to investment grade credit rated and other creditworthy tenants.
Insider buying during the last 30 days
Here is a table of American Realty Capital Properties' insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Purchased||Current Ownership||Increase In Shares|
|Lisa Beeson||COO||Nov 18||7,500||7,500 shares||from 0 to 7,500|
|Peter Budko||EVP||Nov 18||20,000||384,754 shares||+5.5%|
|Edward Weil||President||Nov 15||15,000||121,707 shares||+14.1%|
|Nicholas Schorsch||CEO||Nov 15||30,000||1,314,811 shares||+2.3%|
There have been 72,500 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of American Realty Capital Properties' insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 500,301 shares purchased and there have been 282,000 shares sold by insiders this year.
American Realty Capital Properties reported the third-quarter financial results on November 7 with the following highlights:
|Adjusted funds from operations||$46.7 million|
|Net loss||$63.1 million|
American Realty Capital Properties' 2014 AFFO guidance is from $1.13 to $1.19 per share.
(Source: Earnings presentation)
American Realty Capital Properties is growing faster than its competitors.
Here is a table of these competitors' insider-trading activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only American Realty Capital Properties has seen intensive insider buying during the last 30 days.
There have been four different insiders buying American Realty Capital Properties and there have not been any insiders selling American Realty Capital Properties during the last 30 days. Two of these four insiders increased their holdings by more than 10%. American Realty Capital Properties has an insider ownership of 1.30%.
There is one analyst buy rating, three neutral ratings, and zero sell ratings with an average price target of $16.25. American Realty Capital Properties has a book value of $8.82 per share and the stock has a dividend yield of 7.03%. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.