Mid-America Apartment Communities: 3 Different Insiders Have Purchased Shares Since November 13

Dec. 5.13 | About: Mid-America Apartment (MAA)

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 increased their holdings by more than 10%.

Mid-America Apartment Communities (NYSE:MAA) is an independent real estate investment trust. The firm invests in the real estate markets of the United States.

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Insider buying during the last 30 days

Here is a table of Mid-America Apartment Communities' insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Harold Ripps Director Dec 4 10,000 159,569 shares +6.7%
Robert Delpriore EVP Nov 29 1,000 1,000 shares from 0 to 1,000
W. Reid Sanders Director Nov 13 1,300 8,234 shares +18.7%
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There have been 12,300 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Mid-America Apartment Communities' insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
December 2013 10,000 0
November 2013 2,300 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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There have been 12,300 shares purchased and there have been zero shares sold by insiders this year. The month of December has seen the most insider buying.

Financials

Mid-America Apartment Communities reported the third-quarter financial results on November 6 with the following highlights:

Revenue $136.3 million
Net income $44.3 million
Funds from Operations $50.1 million
Cash $181.1 million
Debt $1.86 billion
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On December 3, Mid-America Apartment Communities announced that its board of directors voted to increase the quarterly common dividend by 5% to a quarterly payment of $0.73 per share, or $2.92 per share on an annual basis.

Outlook

Mid-America Apartment Communities' guidance is as follows:

Q4/2013 FY2013
Core FFO $1.09-$1.19 per share $4.81-$4.91 per share
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Competition

Mid-America Apartment Communities' peer group consists of the following: Apartment Investment and Management Company (NYSE:AIV), Associated Estates Realty Corporation (NYSE:AEC), AvalonBay Communities (NYSE:AVB), BRE Properties (NYSE:BRE), Camden Property Trust (NYSE:CPT), Equity Residential (NYSE:EQR), Essex Property Trust (NYSE:ESS), Home Properties (NYSE:HME), Post Properties (NYSE:PPS), and UDR, Inc. (NYSE:UDR). Here is a table comparing these companies.

MAA Peer Median Peer Average
Price/FFO 12.94 16.05 17.40
Dividend Yield 4.77% 3.67% 3.71%
UPREIT Market Cap 4.8B 4.9B 6.8B
Total Capitalization 6.7B 8.4B 10.6B
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Mid-America Apartment Communities' dividend yield is above the peer average.

Here is a table of these competitors' insider-trading activities this year.

Company Insider buying / shares Insider selling / shares
AIV 0 89,266
AEC 1,400 145,217
AVB 5,000 7,881,563
BRE 2,040 8,500
CPT 0 172,376
EQR 0 178,387
ESS 673 13,518
HME 2,450 87,571
PPS 6,706 24,826
UDR 0 122,400
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Only Mid-America Apartment Communities has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Mid-America Apartment Communities and there have not been any insiders selling Mid-America Apartment Communities during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Mid-America Apartment Communities has an insider ownership of 0.70%.

There are three analyst buy ratings, seven neutral ratings, and one sell rating with an average price target of $70.50. Mid-America Apartment Communities has a book value of $23.19 per share. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

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(Source: Investor presentation)

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in MAA 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.