Richard Agree, Chairman of Agree Realty (ADC), recently bought 10,500 shares. The buy increased his stake by 2 percent, and came to a total cost of $656,985.
That’s the first insider buy of the year. 2023 saw over two dozen insider buys, including a buy from Richard Agree valued at over $1.1 million. Company directors and executives alike picked up shares last year. And there were no insider sales.
Overall, Agree Realty insiders own 1.6 percent of shares.
The retail-oriented real estate investment trust dropped 17 percent over the past year, amid a weak retail environment and rising interest rates.
Operationally, Agree bucked the trend, with revenues up 24 percent and overall earnings rising 5 percent. Plus, the REIT managed to hit a 32 percent profit margin.
Action to take: With interest rates expected to ease this year, REITs should have a tailwind to help push shares higher. As a REIT, Agree is required to pay out most of its earnings as dividends. At current prices, Agree yields 4.7 percent.
For traders, shares have already started to trend higher as interest rates have peaked. That bodes well for a call option trade.
The July $65 calls, last going for about $2.45, could see mid-to-high double-digit returns in the months ahead on a further rally in Agree shares.
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 company mentioned in this article.