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 increase their holdings by more than 10%.
Franklin Street Properties Corporation (NYSEMKT:FSP) operates as a real estate investment trust. Its portfolio of real estate assets consists of institutional-quality office buildings & includes select investments in central business district properties.
Insider buying during the last 30 days
Here is a table of Franklin Street Properties' insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Purchased||Current Ownership||Increase In Shares|
|Georgia Murray||Director||Feb 28||4,000||31,400 shares||+14.6%|
|Jeffrey Carter||CIO||Feb 26||2,900||12,675 shares||+29.7%|
|John Demeritt||CFO||Feb 21||1,000||25,000 shares||+4.2%|
There have been 7,900 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of Franklin Street Properties' insider activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 40,500 shares purchased, and there have been zero shares sold by insiders since January 2013.
Franklin Street Properties reported the full-year 2013 financial results on February 18 with the following highlights:
|Funds from operations||$100.8 million|
|Net income||$19.8 million|
Franklin Street Properties' full year FFO guidance for 2014 is in the range of $1.08 to $1.12 per diluted share.
Franklin Street Properties' peer group consists of Brandywine Realty Trust (NYSE:BDN), CommonWealth REIT (NYSE:CWH), Corporate Office Properties Trust (NYSE:OFC), Government Properties Income Trust (NYSE:GOV), Highwoods Properties (NYSE:HIW), Hudson Pacific Properties (NYSE:HPP), Kilroy Realty Corporation (NYSE:KRC), MPG Office Trust (NYSE:MPG), and Parkway Properties (NYSE:PKY).
Here is a table comparing Franklin Street Properties against the peer average.
Franklin Street Properties has a higher dividend yield, and a lower price/FFO ratio than the peer average.
Here is a table of these nine peer group companies' insider activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only Franklin Street Properties has seen intensive insider buying during the last 30 days.
There have been three different insiders buying Franklin Street Properties, and there have not been any insiders selling Franklin Street Properties during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Franklin Street Properties has an insider ownership of 10.16%.
The insiders purchased their shares at prices ranging from $12.10 to $12.51. I believe Franklin Street Properties could be a good pick below $12.50 based on the intensive insider buying.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in FSP 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.