Landmark Dividend, a major holder of Landmark Infrastructure Partners (LMRK), recently added 852,748 shares to their holdings. The buy increased the fund’s stake in the firm by over 24 percent, and came to a total purchase price of just over $14 million.
This follows up on a 158,261 share buy from the fund last month as well. These two buys mark the only insider activity since 2018, when the fund and another insider last bought shares as well.
Overall, insiders own more than 20 percent of the company.
Shares of the owner of infrastructure properties in the US have risen nearly 60 percent in the past year, more than double the return of the S&P 500 over the same time.
With inflation expectations continuing to rise, a portfolio of real assets is likely to hold its own, and the company’s 35 percent profit margin looks attractive here too.
Action to take: Structured as a partnership, investors may like shares here, given the fund’s relatively high payout of 4.9 percent. The dividend has been largely unchanged over the past year.
For traders, shares are likely to continue moving higher. The March $15 calls are about $1.50 in-the-money, and carry a bid/ask spread around $3.00. On a continued move higher in shares, they could leverage a small move into a mid-to-high double-digit gain.
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.