Jeffrey Gould, President and CEO at BRT Apartments (BRT), recently added 4,626 shares. The buy increased his holdings by about 0.1 percent, and came to a total cost of just over $93,000.
The buy came a day after the CEO bought 14,445 shares, paying about $291,000. Overall, company insiders have been large and steady buyers since May, with some modest insider sales last occurring back in January.
Overall, insiders own about 20 percent of the multifamily residential REIT.
Shares are up about 7 percent in the past year, and the stock is attractively valued at about 7 times earnings. However, with rising interest rates and a slowing real estate market, the REIT saw revenue slide nearly 14 percent, with earnings down by nearly 75 percent.
Over the long haul, the company’s ownership of real estate should hold up fine, particularly if interest rates stop rising early next year or even start to come down.
Action to take: The REIT has a low payout ratio, and yields nearly 4.9 percent at current prices. A turnaround in the real estate markets in the next year could allow shares to move significantly higher while also offering some modest dividend growth.
For traders, the June 2023 $22.50 calls, last going for about $1.50, offer mid-to-high double-digit return potential on a further rally in the coming months.
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.