Franklin Street Properties: 3 Different Insiders Have Purchased Shares During The Last 30 Days

Mar. 3.14 | About: Franklin Street (FSP)

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 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.

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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%
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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
February 2014 7,900 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 10,000 0
August 2013 4,350 0
July 2013 0 0
June 2013 0 0
May 2013 13,250 0
April 2013 0 0
March 2013 5,000 0
February 2013 0 0
January 2013 0 0
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There have been 40,500 shares purchased, and there have been zero shares sold by insiders since January 2013.

Financials

Franklin Street Properties reported the full-year 2013 financial results on February 18 with the following highlights:

Revenue $213.6 million
Funds from operations $100.8 million
Net income $19.8 million
Cash $19.6 million
Debt $926.5 million
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Outlook

Franklin Street Properties' full year FFO guidance for 2014 is in the range of $1.08 to $1.12 per diluted share.

Competition

Franklin Street Properties' peer group consists of Brandywine Realty Trust (NYSE:BDN), CommonWealth REIT (Pending: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.

FSP Peer average
Price/FFO 11.70 15.40
Dividend yield 6.07% 3.56%
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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
BDN 0 26,667
CWH 1,000 0
OFC 0 30,000
GOV 0 0
HIW 0 0
HPP 0 0
KRC 0 4,166
MPG 0 0
PKY 0 0
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Only Franklin Street Properties has seen intensive insider buying during the last 30 days.

Conclusion

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.