Nicholas Schorsch, a major owner at New York City REIT (NYC), recently added 12,500 shares. The buy increased his holdings by just under 1 percent, and came to a total price of $167,125.
The move came the day after he made another buy, also for the same number of shares, paying just slightly over $162,000. Other insiders at the company have been regular buyers over the past two years. The last insider sale was modest and occurred back in 2019.
Overall, insiders at the company own just under 10 percent of shares.
The company, which owns a portfolio of commercial properties just in the New York City boroughs, is up 53 percent over the past year.
Even with that rally, shares still look attractive, as they trade for just over half their book value.
Action to take: Investors will prefer shares here, even with the stock’s rally. That’s because a REIT pays out most of its income in the form of dividends. While the current yield is a bit low at just under 3.1 percent, there’s potential for growth in time.
For traders, the October $12.50 calls look attractive. Last going for about $2.60, the trade offers a potential return in the mid-to-high double-digit range, particularly if real estate plays continue to perform well in today’s environment.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.