Craig Erlich, COO at Agree Realty Corp (ADC), recently added 4,898 shares. The buy increased his holdings by 19 percent, and came to a total cost just under $80,000.
The buy came a week after a company director bought 11,000 shares, paying just over $785,000. Otherwise, company insiders haven’t made any changes in their holdings in nearly a year. Going back over the past three years, insiders have been consistent buyers.
Overall, insiders own 1.6 percent of company shares.
The real estate investment trust has traded flat over the past year, amid a general market decline. The REIT’s focus on triple-net leases mean that they haven’t had to absorb higher costs due to inflation, leaving that to tenants to handle.
Revenues also rose 26 percent in the past year, and the company sports a 36 percent profit margin.
Action to take: Interested investors can get a 4.1 percent dividend yield at today’s prices. That’s slightly higher than the company’s average yield, and Agree has raised its dividend payout in the past year.
For traders, the REIT will likely continue to slowly trend higher. The July $70 calls are an at-the-money trade. Last going for about $5.40, investors can likely see mid-double-digit gains on a further move higher in shares from here.
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.