4 Insiders Are Buying Physicians Realty Trust Stock

| About: Physicians Realty (DOC)

Summary

Recently, 5 insiders bought a total of 10,500 shares at an average price of $13.20.

Overall, 397,192 shares were bought and 0 shares were sold in the last twelve months.

Together, insiders hold 1.21% of the shares outstanding.

According to management, Physicians Realty Trust (NYSE:DOC) "is a self-managed healthcare real estate company recently organized to acquire, selectively develop, own and manage healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. They invest in real estate that is integral to providing high quality healthcare services. Their properties typically are on a campus with a hospital or other healthcare facilities or strategically located and affiliated with a hospital or other healthcare facilities. Their management team has significant public healthcare REIT experience and long established relationships with physicians, hospitals and healthcare delivery system decision makers that they believe will provide quality investment opportunities to generate attractive risk-adjusted returns to our shareholders."

History

DOC Chart

DOC data by YCharts

Currently, DOC trades near the top of its 52-week range.

Recent Transactions
Name Position Shares Transacted Transaction Price Date
SWEET JR JOHN W Officer 900 $14.19 6/3/2014
WEISS RICHARD A Director 1,000 $13.88 6/2/2014
ANDERSON STANTON D Director 3,600 $13.75 5/30/2014
THOMPSON TOMMY G Director 4,000 $12.50 5/27/2014
LUCEY JOHN W Officer 1,000 $12.50 5/27/2014
Click to enlarge

Recently, 5 insiders bought a total of 10,500 shares at an average price of $13.20.

Insider Transactions in the Last Twelve Months
Holder Name Amount Held % Shares Outstanding Latest Chg Filing Date
THOMAS JOHN T 133,856 0.41% 0 5/20/2014
SWEET JR JOHN W 81,600 0.25% 900 6/3/2014
THEINE MARK D 38,494 0.12% 0 5/20/2014
ANDERSON STANTON D 34,142 0.10% 3,600 5/30/2014
THOMPSON TOMMY G 32,054 0.10% 4,000 5/27/2014
BLACK JR ALBERT C 21,845 0.07% 0 5/20/2014
WEISS RICHARD A 14,151 0.04% 1,000 6/2/2014
EBINGER WILLIAM A 14,020 0.04% 0 5/20/2014
BAUMGARTNER MARK A 13,796 0.04% 0 5/20/2014
LUCEY JOHN W 13,234 0.04% 1,000 5/27/2014
Click to enlarge

Overall, 397,192 shares were bought and 0 shares were sold in the last twelve months.

Current Insider Holdings
Date Net # of Transactions Shares Bought Shares Sold Net Shares Transacted Price Monthly Volume
Jun-14 2 1,900   1,900 $14.18 3,678,000
May-14 3 8,600   8,600 $13.81 9,383,000
Apr-14         $13.72 1,820,000
Mar-14 10 84,266   84,266 $13.92 2,411,000
Feb-14         $13.39 1,884,000
Jan-14         $12.39 2,869,000
Dec-13 2 9,696   9,696 $12.74 6,749,000
Nov-13         $11.95 916,188
Oct-13         $12.56 1,689,000
Sep-13         $12.12 2,021,000
Aug-13         $11.26 1,062,000
Jul-13 22 292,730   292,730 $11.50 2,356,000
Click to enlarge

Source: Form 4

Together, insiders hold 1.21% of the shares outstanding.

From the comparables table below, you can see that DOC outshines its peers in both revenue and EBITDA growth. In fact, given DOC's growth trajectory, the stock trades below the average in terms of FY+2 P/E, EV/Revenue, and EV/EBITDA ratios.

Comparables Table
Ticker     (NYSE:HCP) (NYSE:HCN) (NYSE:VTR) (NYSE:NHI) (NYSE:HR) (NYSE:MPW) (NASDAQ:SBRA)    
Company Name: PHYSICIANS REALT HCP INC HEALTH CARE REIT VENTAS INC NATL HEALTH INV HEALTHCARE RLTY MEDICAL PROPERTI SABRA HEALTH CAR    
Latest Fiscal Year: 12/2013 12/2013 12/2013 12/2013 12/2013 12/2013 12/2013 12/2013    
Latest Available Period Date: 3/31/2014 3/31/2014 3/31/2014 3/31/2014 3/31/2014 3/31/2014 3/31/2014 3/31/2014    
52-Week High 14.63 47.45 68.80 72.32 65.94 27.37 15.50 31.17    
52-Week High Date 6/6/2014 7/18/2013 7/12/2013 7/19/2013 7/23/2013 7/11/2013 7/22/2013 4/30/2014    
52-Week Low 11.00 35.50 52.43 54.89 53.01 20.85 11.47 21.55    
52-Week Low Date 8/27/2013 12/12/2013 12/19/2013 12/12/2013 9/5/2013 1/2/2014 9/5/2013 8/19/2013    
Daily Volume 120,877 3,133,572 2,165,277 1,814,526 121,202 412,995 1,163,270 187,764    
Current Price:   14.18 40.65 62.09 62.95 62.20 24.95 12.88 28.10    
52-Week High % Change -3.1% -14.3% -9.7% -13.0% -5.7% -8.8% -16.9% -9.8%    
52-Week Low % Change 28.9% 14.5% 18.4% 14.7% 17.3% 19.7% 12.3% 30.4%    
Total Common Shares (NYSE:M) 21.55 457.0 289.6 294.2 33.1 95.9 161.3 38.8    
Market Capitalization 462.7 18,625.7 18,965.9 18,528.5 2,055.8 2,396.2 2,221.1 1,328.1    
Total Debt 159.4 8,450.3 10,941.5 9,481.1 629.0 1,388.2 1,472.0 842.1    
Preferred Stock - - 1,006.3 - - - - 0.1    
Minority Interest 34.4 207.8 362.5 238.4 10.5 1.6 - (0.0)    
- Cash and Equivalents 10.1 49.7 185.9 59.8 6.2 10.2 50.3 4.3    
Current Enterprise Value 646.4 27,263.2 31,090.2 28,188.1 2,689.1 3,775.8 3,642.8 2,166.0    
Valuation Average Median
Total Revenue LFY 16.8 2,099.9 2,880.6 2,810.1 117.8 336.9 242.5 134.8 1,079.9 289.7
  LTM 21.5 2,120.5 3,059.4 2,872.6 135.8 350.8 258.7 143.6 1,120.4 304.8
  FY+1 47.6 1,950.7 3,293.1 2,982.1 175.3 366.3 315.3 161.7 1,161.5 340.8
  FY+2 67.8 2,035.0 3,479.6 3,199.0 192.7 390.3 334.8 187.5 1,235.8 362.6
EV/Total Revenue LFY 17.23x 12.00x 9.51x 9.38x 20.97x 10.05x 13.80x 12.62x 13.19x 12.31x
  LTM 22.58x 12.45x 9.63x 9.57x 19.38x 10.54x 13.91x 13.44x 13.94x 12.94x
  FY+1 13.58x 13.98x 9.44x 9.45x 15.34x 10.31x 11.56x 13.40x 12.13x 12.48x
  FY+2 9.53x 13.40x 8.93x 8.81x 13.96x 9.67x 10.88x 11.55x 10.84x 10.28x
EBITDA LFY 8.5 1,692.4 1,432.1 1,577.0 107.2 187.6 190.5 118.4 664.2 189.1
  LTM 11.1 1,707.1 1,581.2 1,612.8 125.3 197.9 204.6 126.0 695.7 201.3
  FY+1 35.5 1,741.0 1,765.4 1,671.3 164.0 215.0 267.3 142.2 750.2 241.1
  FY+2 67.0 1,825.8 1,891.0 1,858.3 181.5 233.3 323.3 186.4 820.8 278.3
EV/EBITDA LFY 34.21x 14.89x 19.13x 16.71x 23.05x 18.04x 17.57x 14.37x 19.75x 17.81x
  LTM 58.46x 15.97x 19.66x 17.48x 21.46x 19.08x 17.80x 17.18x 23.39x 18.44x
  FY+1 18.23x 15.66x 17.61x 16.87x 16.40x 17.56x 13.63x 15.23x 16.40x 16.63x
  FY+2 9.66x 14.93x 16.44x 15.17x 14.82x 16.18x 11.27x 11.62x 13.76x 14.87x
EPS LFY -0.03 1.97 0.10 1.74 2.84 0.20 0.58 0.95 1.04 0.76
  LTM - 1.96 0.38 1.78 3.02 0.26 0.57 1.01 1.28 1.01
  FY+1 0.31 2.06 0.79 1.71 3.18 0.34 1.05 1.79 1.40 1.38
  FY+2 0.73 2.15 0.84 1.80 3.26 1.00 1.14 2.03 1.62 1.47
P/E LFY - 18.44x 535.70x 32.92x 19.75x 106.55x 21.07x 27.66x 108.87x 27.66x
  LTM - 20.74x 163.69x 35.37x 20.60x 95.96x 22.60x 27.82x 55.25x 27.82x
  FY+1 45.30x 19.76x 79.10x 36.81x 19.59x 74.48x 12.27x 15.70x 37.88x 28.29x
  FY+2 19.35x 18.95x 73.92x 34.97x 19.08x 24.95x 11.30x 13.86x 27.05x 19.21x
Revenue Growth 1 Year 29.8% 11.7% 59.6% 13.9% 26.3% 10.8% 22.4% 30.6% 25.6% 24.3%
  5 Year - 14.4% 44.4% 31.4% 25.5% 8.3% 18.9% 0.4% 20.5% 18.9%
EBITDA Growth 1 Year 23.0% 11.4% 32.8% 13.2% 27.6% 12.6% 17.1% 35.9% 21.7% 20.1%
  5 Year - 13.8% 28.2% 22.5% 15.5% 11.6% 15.5% - 17.9% 15.5%
EBITDA Margin LTM 51.49% 80.5% 51.7% 56.1% 92.3% 56.4% 79.1% 87.8% 69.4% 67.8%
  FY+1 74.47% 89.3% 53.6% 56.0% 93.6% 58.7% 84.8% 88.0% 74.8% 79.6%
  FY+2 98.72% 89.7% 54.3% 58.1% 94.2% 59.8% 96.6% 99.4% 81.4% 92.0%
Click to enlarge

Source: Bloomberg

Conclusions

Given its current yield of 6.35%, DOC provides investors with one of the highest dividend yields in the Health Care sector. With a focus on small underleveraged health care properties, Physicians Realty Trust acquires single assets that are too small for larger healthcare REITs. I believe that insiders are confident that DOC will continue to grow as the firm sees several hundred million of acquisition opportunities. The firm completed an IPO on July 18, 2013, so it might be wise for investors to wait for the firm to mature before going long.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within 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.