William Sanders, a director at
Mid-America Apartment Communities (MAA), recently bought 5,000 shares across two transactions. The purchases increased his holdings by 13 percent, and came to a total cost of about $740,000.
These mark the first insider buys over the past two years. Otherwise, there have been regular and steady sales by company insiders, largely at the EVP level. Some sales have been in the $1,000,000 range.
Overall, company insiders own 0.7 percent of shares.
The owner and operator of apartment buildings across 16 states has seen shares drop just over 20 percent in the past year. A slowing real estate market and rising interest rates have hit the space hard.
Earnings have slid 30 percent for MAA, likely from higher maintenance and other costs due to inflation. However, rising rental prices have increased revenues by 8 percent.
Action to take: MAA still sports a 28 percent profit margin. And the company’s debt levels are less than a quarter of their equity, leaving them in strong financial shape for today’s high interest rates.
Investors may want to start buying shares now. They can pick up a 3.9 percent dividend with a history of growth. Plus, they can add more shares on any further drop in the coming months.
For traders, shares are near the low end of their 52-week trading range, and could see a moderate move higher. The December $150 calls, last going for about $5.60, could see mid-double-digit returns on a rally.
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.