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 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.
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%|
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|
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.
Mid-America Apartment Communities reported the third-quarter financial results on November 6 with the following highlights:
|Net income||$44.3 million|
|Funds from Operations||$50.1 million|
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.
Mid-America Apartment Communities' guidance is as follows:
|Core FFO||$1.09-$1.19 per share||$4.81-$4.91 per share|
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|
|UPREIT Market Cap||4.8B||4.9B||6.8B|
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|
Only Mid-America Apartment Communities has seen intensive insider buying during the last 30 days.
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.
(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.