Andrew Spodek, CEO and director at Postal Realty Trust (PST), recently added 10,000 shares. The buy increased his stake by 1%, and came to a total cost of $137,500.
Spodek was the last insider buyer with a 20,000 share buy last September, paying $267,460. And he made a further five buys earlier in 2023. The company’s CFO and Treasurer were also slight sellers of shares last month.
Overall, Postal Realty Trust insiders own 5.6% of shares.
The office REIT, which mostly rents out spaces to U.S. Post Office locations, is down about 7% over the past year.
Operationally, PSTL has had a mixed year. Revenues rose 14%, but earnings slid an equal amount. The Post Office raised stamp prices last year amid an operational loss, and is looking to raise stamp prices again in July.
Action to take: Investing in companies that have a major customer that dominates total revenues carries a unique risk compared to other investments.
PSTL looks attractive as a current income play, given its 7% dividend. However, if the company’s earnings don’t improve, that dividend could be at risk of a cut.
Overall, that makes shares a speculative income play.
For traders, shares have been trending down in recent week, and look to be heading to re-test their old lows at $12.98. The July $12.50 puts, last trading for $0.15, could see triple-digit returns if shares break below that low in the coming weeks.
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.