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 (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 (AIV), Associated Estates Realty Corporation (AEC), AvalonBay Communities (AVB), BRE Properties (BRE), Camden Property Trust (CPT), Equity Residential (EQR), Essex Property Trust (ESS), Home Properties (HME), Post Properties (PPS), and UDR, Inc. (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)