Resource Capital: 5 Different Insiders Have Purchased Shares During The Last 30 Days

Jun.13.14 | About: Resource Capital (RSO)

Summary

5 insiders purchased Resource Capital stock within one month.

The stock was sold by no insiders in the month of intensive purchasing.

2 of these 5 insiders increased their holdings by more than 10%.

Resource Capital Corp. (NYSE:RSO) primarily focuses on originating, holding, and managing commercial mortgage loans and other commercial real estate-related debt and equity investments in the United States.

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Insider buying during the last 30 days

Here is a table of Resource Capital's insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Richard Fore Director June 11 17,000 28,275
shares
+150.8%
David Bloom SVP June 6 8,500 311,551 shares +2.8%
Murray Levin Director May 19 4,500 48,109
shares
+10.3%
Steven Kessler Chairman May 19 9,158 150,000 shares +6.5%
Jonathan Cohen CEO May 19 40,000 1,613,626 shares +2.5%
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There have been 79,158 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Resource Capital's insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
June 2014 25,500 0
May 2014 53,658 0
April 2014 0 0
March 2014 0 37,165
February 2014 0 44,402
January 2014 0 37,500
December 2013 0 22,637
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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There have been 79,158 shares purchased and there have been 141,704 shares sold by insiders since January 2013. The month of May 2014 has seen the most insider buying.

Financials

Resource Capital reported the first-quarter financial results on May 6 with the following highlights:

Revenue $31.9 million
AFFO $25.0 million
Net income $15.1 million
Cash $166.7 million
Debt $1.5 billion
Book value $6.20 per share
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The five insiders purchased their shares after these results.

Competition

Resource Capital's competitors include Annaly Capital Management (NYSE:NLY), and Capstead Mortgage (NYSE:CMO). Here is a table comparing these companies.

Company RSO NLY CMO
Market Cap: 731.52M 10.93B 1.27B
Employees: 83 48 13
Qtrly Rev Growth (yoy): 0.22 N/A 0.11
Revenue: 94.34M 3.01B 144.05M
Gross Margin: 0.86 1.00 1.00
Operating Margin: 0.40 0.93 0.90
Net Income: 42.82M 2.58B 94.40M
EPS: 0.35 2.69 0.99
P/S: 7.81 3.65 8.84
P/B: 0.94 0.94 1.05
Dividend Yield: 13.80% 10.40% 10.30%
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Resource Capital has the highest dividend yield among these three companies.

Here is a table of these competitors' insider activities during the last 12 months.

Company Insider buying / shares Insider selling / shares
NLY 456,224 0
CMO 50,400 0
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Only Resource Capital has seen intensive insider buying during the last 30 days.

Conclusion

There have been five different insiders buying Resource Capital and there have not been any insiders selling Resource Capital during the last 30 days. Two of these five insiders increased their holdings by more than 10%. Resource Capital has an insider ownership of 7.92%.

The five insiders purchased their shares at prices ranging from $5.40 to $5.86. I believe Resource Capital could be a good pick below $5.86 based on the intensive insider buying.

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(Source: Investor presentation)

Disclosure: The author has no positions in any stocks mentioned, but may initiate a long position in RSO over the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.