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(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.

(click to enlarge)

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.

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Lewis GoldDirectorJan 1616,66636,832 shares+82.6%
Mack PridgenDirectorJan 1625,48328,983 shares+728.1%
Michael BaumannCEOJan 16120,766311,305 shares+63.4%
David LevinPresidentJan 16165,528285,694 shares+137.7%
Richard RossCFOJan 161,3773,277 shares+72.5%

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.

MonthInsider buying / sharesInsider selling / shares
January 2014329,8200
December 201300
November 20131,9000
October 201300
September 201300
August 201300
July 201300
June 201300
May 201325,0000
April 201300
March 201300
February 201300
January 201300

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

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.

CompanyTSREARPISBY
Market Cap:82.68M591.93M654.67M
Employees:11045N/A
Qtrly Rev Growth (yoy):1.2415.7018.42
Revenue:23.96M28.09M35.67M
Gross Margin:0.660.460.02
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:19.97N/AN/A
PEG (5 yr expected):N/A-1.03N/A
P/S:3.3121.0318.04

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.

CompanyInsider buying / sharesInsider selling / shares
ARPI16,0000
SBY

210,551

0

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.

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