Kristy Pipes, a director at
Public Storage (PSA), recently bought 2,149 shares. The buy is a new stake for the director, and came to a total price of $599,485.
This marks the first insider buy since December 2022, when the company President and CEO bought 2,500 shares at a price of $744,137. Otherwise, there have been a few insider sales in 2023, including some large sales by a director following the expiration of stock options.
Overall, Public Storage insiders own 10.2% of shares.
The self-storage facility REIT has traded flat over the past year.
The company has had a mixed year. Revenues are up 6%, reflecting price increases for storage units. However, overall earnings have dropped 2%, amid lingering concerns over real estate valuations.
Most importantly for investors, the REIT sports a hefty 46% profit margin. And as a REIT, investors get a high income. Shares pay a 4.2% dividend at current prices.
Action to take: Self-storage demand remains strong, and Public Storage is one of the largest players in the industry. Shares likely have some long-term upside, in addition to the large dividend that the stock pays now.
For traders, shares are trending higher in the short-term. The September $310 calls, last trading for about $6.90, could see mid-double-digit returns from a push higher in shares in the weeks ahead. Traders may want to look to take quick profits rather than hold the trade until expiration.
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.