Trade Street Residential: 5 Different Insiders Have Purchased Shares This Year

Jan.23.14 | About: Trade Street (TSRE)

(Editors' Note: This article covers a micro-cap stock. Please be aware of the risks associated with these stocks.)

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%.

Trade Street Residential (NASDAQ:TSRE) engages in acquiring, owning, operating, and managing garden-style and mid-rise apartment communities in mid-sized cities and suburban submarkets of larger cities primarily in the southeastern United States.

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Insider buying during the last 30 days

Here is a table of Trade Street Residential's insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Lewis Gold Director Jan 16 16,666 36,832 shares +82.6%
Mack Pridgen Director Jan 16 25,483 28,983 shares +728.1%
Michael Baumann CEO Jan 16 120,766 311,305 shares +63.4%
David Levin President Jan 16 165,528 285,694 shares +137.7%
Richard Ross CFO Jan 16 1,377 3,277 shares +72.5%
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There have been 329,820 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Trade Street Residential's insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
January 2014 329,820 0
December 2013 0 0
November 2013 1,900 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 25,000 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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There have been 356,720 shares purchased, and there have been zero shares sold by insiders since January 2013. The month of January 2014 has seen the most insider buying.

Financials

Trade Street Residential reported the third-quarter financial results on November 7 with the following highlights:

Revenue $8.0 million
Net income $1.4 million
Funds from operations -$1.7 million
Cash $6.8 million
Debt $253.8 million
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News

On January 16, Trade Street Residential announced the completion of its previously announced $150 million recapitalization.

Competition

Trade Street Residential's competitors include American Residential Properties (NYSE:ARPI), and Silver Bay Realty Trust (NYSE:SBY). Here is a table comparing these companies.

Company TSRE ARPI SBY
Market Cap: 82.68M 591.93M 654.67M
Employees: 110 45 N/A
Qtrly Rev Growth (yoy): 1.24 15.70 18.42
Revenue: 23.96M 28.09M 35.67M
Gross Margin: 0.66 0.46 0.02
EBITDA: 3.78M -290.00K -5.32M
Operating Margin: -0.25 -0.58 -0.59
Net Income: -800.49K -21.24M -18.69M
EPS: 0.36 -0.96 -0.48
P/E: 19.97 N/A N/A
PEG (5 yr expected): N/A -1.03 N/A
P/S: 3.31 21.03 18.04
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Trade Street Residential has the lowest P/S ratio among these three companies.

Here is a table of these competitors' insider-trading activities during the last 12 months.

Company Insider buying / shares Insider selling / shares
ARPI 16,000 0
SBY

210,551

0
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Only Trade Street Residential has seen intensive insider buying during the last 30 days.

Conclusion

There have been five different insiders buying Trade Street Residential, and there have not been any insiders selling Trade Street Residential during the last 30 days. All five of these insiders increased their holdings by more than 10%. Trade Street Residential has an insider ownership of 1.10%.

The insiders purchased their shares at $6.33 share price pursuant to a private placement. I believe the stock could be a good pick at $6.33 based on the intensive insider buying.

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