Amal Johnson, a director at Essex Property Trust (ESS), recently added 1,000 shares. The buy increased his holdings by 67 percent, and came to a total cost of just over $218,000.
This marks the first insider buy at the company in at least four years. Otherwise, company insiders have largely been sellers of shares following the exercise of stock options. That includes both directors and company executives.
Overall, insiders own 1.2 percent of the company.
Shares of the residential REIT have dropped about 40 percent in the past year. The real estate market has slowed and prices have started to show a drop as interest rates have rapidly rose from record lows.
Even with that drop, revenues rose over 8 percent for the REIT, and profit margins held at a solid 22 percent.
Action to take: As a REIT, long-term investors may like the company for its above-average dividend. The REIT yields about 4 percent at current prices, although the annual payout did show a slight decrease over the past year.
For traders, a longer-dated trade, like the July 2023 $250 calls, could be a solid winner in the coming months. The option last went for about $5.50, and could deliver mid-to-high double-digit returns for traders in the months ahead on a move higher for shares.
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.