(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:
- 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%.
Trade Street Residential (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.
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%|
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|
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.
Trade Street Residential reported the third-quarter financial results on November 7 with the following highlights:
|Net income||$1.4 million|
|Funds from operations||-$1.7 million|
On January 16, Trade Street Residential announced the completion of its previously announced $150 million recapitalization.
|Qtrly Rev Growth (yoy):||1.24||15.70||18.42|
|PEG (5 yr expected):||N/A||-1.03||N/A|
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|
Only Trade Street Residential has seen intensive insider buying during the last 30 days.
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.