Realty Income: 4 Different Insiders Have Sold Shares This Month

| About: Realty Income (O)

Summary

4 insiders sold Realty Income stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

3 of these 4 insiders decreased their holdings by more than 10%.

Realty Income Corporation (NYSE:O) is a publicly traded real estate investment trust.

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Insider selling during the last 30 days

Here is a table of Realty Income's insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
John Case CEO May 9 15,000 No 263,527
shares
5.4%
Gregory McLaughlin Director May 8 5,225 No 18,672 shares 21.9%
Michael Pfeiffer EVP May 5 16,000 No 79,787 shares 16.7%
Paul Meurer CFO May 5 16,259 No 68,397 shares 19.2%
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There have been 52,484 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Realty Income's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
May 2014 52,484 0
April 2014 0 0
March 2014 0 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 38,210 0
August 2013 0 0
July 2013 0 0
June 2013 0 800
May 2013 87,910 0
April 2013 31,250 0
March 2013 127,702 0
February 2013 0 0
January 2013 0 0
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There have been 337,556 shares sold, and there have been 800 shares purchased by insiders since January 2013.

Financials

Realty Income reported the first-quarter financial results on May 1 with the following highlights:

Revenue $221.6 million
FFO $134.5 million
Net income $47.2 million
Cash $14.1 million
Debt $4.8 billion
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The four insiders sold their shares after these results.

Outlook

Realty Income's 2014 guidance is as follows:

FFO $2.53-$2.58 per share
EPS $0.86-$0.91
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Competition

Realty Income's competitors include Kimco Realty Corporation (NYSE:KIM), National Retail Properties (NYSE:NNN), and Regency Centers Corporation (NYSE:REG). Here is a table comparing these companies.

Company O KIM NNN REG
Market Cap: 9.69B 9.31B 4.33B 4.95B
Employees: 118 597 62 363
Qtrly Rev Growth (yoy): 0.26 0.09 0.13 0.10
Revenue: 824.42M 950.98M 403.93M 520.72M
Gross Margin: 0.95 0.74 0.95 0.76
EBITDA: 726.50M 573.05M 352.21M 328.53M
Operating Margin: 0.48 0.34 0.62 0.38
Net Income: 157.76M 198.39M 133.04M 63.01M
EPS: 0.94 0.43 1.13 1.40
P/E: 46.82 52.86 31.09 38.34
PEG (5 yr expected): 3.20 4.30 4.99 3.56
P/S: 11.82 9.87 10.73 9.53
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Realty Income has the highest P/S ratio among these four companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
KIM 0 5,375
NNN 0 77,036
REG 0 27,839
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Only Realty Income has seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling Realty Income, and there have not been any insiders buying Realty Income during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. Realty Income has an insider ownership of 0.63%.

There are five analyst buy ratings, seven neutral ratings, and three sell ratings with an average price target of $41.58. Before going short Realty Income, I would like to get a bearish confirmation from the Point & Figure chart. The three main reasons for the proposed short entry are a relatively high P/S ratio, bearish analyst price targets, and the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within 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.