American Hotel Income Properties: 3 Different Insiders Have Purchased Shares During The Last 30 Days

Jun.16.14 | About: American Hotel (AHOTF)

Summary

3 insiders purchased American Hotel Income Properties stock within one month.

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

All 3 of these insiders increased their holdings by more than 10% each.

American Hotel Income Properties REIT LP (OTC:AHOTF) engages in the acquisition and operation of hotel properties in the United States.

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Insider buying during the last 30 days

Here is a table of American Hotel Income Properties' insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Peter Armstrong Chairman June 4-13 48,000 100,050 shares +92.2%
Azim Lalani CFO June 4 1,000 1,000 shares from 0 to 1,000
W. Michael Murphy Director May 22-27 10,000 10,000 shares from 0 to 10,000
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There have been 59,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of American Hotel Income Properties' insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
June 2014 49,000 0
May 2014 10,000 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 0 0
August 2013 8,330 0
July 2013 0 0
June 2013 5,000 0
May 2013 5,870 0
April 2013 0 0
March 2013 0 0
February 2013 145,550 0
January 2013 0 0
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There have been 223,750 shares purchased and there have been zero shares sold by insiders since February 2013. The month of June 2014 has seen the most insider buying this year. American Hotel Income Properties had its IPO in February 2013.

Financials

American Hotel Income Properties reported the first-quarter financial results on May 9 with the following highlights:

Revenue $17.2 million
Funds from operations $2.0 million
Cash $8.3 million
Debt $131.4 million
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The three insiders purchased their shares after these results. On June 4, American Hotel Income Properties closed a $46.7 million public offering.

Competition

American Hotel Income Properties' competitors include Hospitality Properties Trust (NYSE:HPT), RLJ Lodging Trust (NYSE:RLJ), and Hersha Hospitality Trust (NYSE:HT). Here is a table comparing these companies.

Company AHOTF HPT RLJ HT
Market Cap: 134.32M 4.40B 3.40B 1.29B
Qtrly Rev Growth (yoy): 2.09 0.11 0.10 0.22
Revenue: 59.70M 1.60B 991.88M 352.72M
Gross Margin: 0.16 0.40 0.34 0.36
EBITDA: 13.52M 598.75M 296.73M 111.89M
Operating Margin: 0.09 0.18 0.17 0.13
Net Income: -34.51K 113.97M 110.28M 6.59M
EPS: -0.00 0.79 0.95 0.18
P/E: N/A 36.98 29.52 36.18
P/S: 2.25 2.73 3.41 3.63
P/B: 1.19 1.58 1.60 1.60
Dividend Yield: 8.8% 6.6% 3.1% 3.7%
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American Hotel Income Properties has the highest dividend yield among these four companies.

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

Company Insider buying / shares Insider selling / shares
HPT 0 0
RLJ 0 5,000
HT 0 12,267
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Only American Hotel Income Properties has seen insider buying this year.

Conclusion

There have been three different insiders buying American Hotel Income Properties, and there have not been any insiders selling American Hotel Income Properties during the last 30 days. All three of these insiders increased their holdings by more than 10% each.

The three insiders purchased their shares at prices ranging from $9.32 (C$10.11) to $9.59 (C$10.41). I believe American Hotel Income Properties could be a good pick below $9.59 based on the intensive insider buying.

(Source: Investor presentation)

Disclosure: The author has no positions in any stocks mentioned, but may initiate a long position in AHOTF 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.

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