Daniel Landy, an EVP at UMH Properties (UMH), recently bought 1,900 shares. The buy increased his stake by 1 percent, and came to a total price of $33,089.
That’s on top of a number of smaller buys from other company insiders, including two directors, and the company President and CEO in recent weeks. Insiders have only been buyers of shares in the past year, with some director sales going back further.
Overall, insiders own 6.9 percent of the manufactured home community real estate investment trust.
Shares have dropped 40 percent in the past year, amid a slowdown in real estate activity and as mortgage rates have more than doubled, decreasing home affordability. UMH lost over $36 million last year, even after revenues rose by 5 percent.
Action to take: While shares look potentially attractive with a 5.9 percent dividend yield right now, that payout could be under pressure if current conditions continue. Investors are better off looking elsewhere in the real estate space right now.
For traders, the current trend is down, and shares are trending to new lows. The June $15 puts, which are already about $1 in-the-money, are currently priced at about $1.95. Traders could potentially see mid-to-high double-digit returns on further weakness in shares 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.