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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%.

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.


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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
November 2013 72,500 0
October 2013 0 0
September 2013 0 0
August 2013 205,000 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 113,001 0
March 2013 109,800 0
February 2013 0 0
January 2013 0 282,000

There have been 500,301 shares purchased and there have been 282,000 shares sold by insiders this year.

Financials

American Realty Capital Properties reported the third-quarter financial results on November 7 with the following highlights:

Revenue $60.9 million
Adjusted funds from operations $46.7 million
Net loss $63.1 million
Cash $150.5 million
Debt $1.6 billion

Outlook

American Realty Capital Properties' 2014 AFFO guidance is from $1.13 to $1.19 per share.


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(Source: Earnings presentation)

Competition

American Realty Capital Properties' competitors include Realty Income Corp. (NYSE:O), Kimco Realty (NYSE:KIM), and National Retail Properties (NYSE:NNN). Here is a table comparing these companies.

Company ARCP O KIM NNN
Market Cap: 2.39B 7.80B 8.65B 4.05B
Employees: N/A 114 635 60
Qtrly Rev Growth (yoy): 2.24 0.67 0.08 0.19
Revenue: 176.22M 678.27M 979.18M 377.78M
Gross Margin: N/A 0.98 0.73 0.95
EBITDA: 109.92M 613.18M 590.55M 326.38M
Operating Margin: -0.63 0.51 0.34 0.62
Net Income: -263.76M 126.29M 145.61M 118.42M
EPS: -1.55 1.02 0.45 1.12
P/E: N/A 38.85 46.91 29.60
PEG (5 yr expected): N/A 3.20 3.40 6.08
P/S: 13.63 11.50 8.83 10.73

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
O 800 285,072
KIM 0 464,866
NNN 2,550 201,870

Only American Realty Capital Properties has seen intensive insider buying during the last 30 days.

Conclusion

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.

Source: Intensive Insider Buying In American Realty Capital Properties