Witnessing an increase in insider buying within a specific market sector is often indicative of a positive trend. It suggests that the sector is undervalued and is showing signs of future improvements. Insiders typically purchase shares when they believe in the potential of their company, making it a positive sign for investors.
Recently, there has been a surge in insider purchases within real estate investment trusts (REITs). It indicates that company officials perceive that share prices have stabilized and are at attractive levels. Additionally, the Federal Reserve’s decision to pause interest rate hikes has contributed to a bottoming effect on several REITs with declining share prices.
Don’t Miss:
Here are five REITs with recent insider buying that could signal better times ahead:
Arbor Realty Trust Inc. (NYSE:ABR) is a Long Island, New York-based mortgage REIT that specializes in bridge and mezzanine loans for commercial and residential properties. A notable portion of its loans originates from Fannie Mae and Freddie Mac programs.
On Nov. 8, Chairman and CEO Ivan Kaufman acquired 10,000 shares of Arbor Realty Trust common stock for a total of $124,700. Shortly after this, Viceroy Research released a critical report on Arbor Realty, causing the stock to plunge by over 8%. In response, CFO Paul Elenio demonstrated his faith in the company by purchasing 7,500 shares at an average price of $12.37, bringing his total holdings to 277,299 shares.
Arbor Realty Trust’s recent closing price was $12.19, just below Elenio’s purchase price.
American Strategic Investment Co. (NYSE:NYC) is a New York-based diversified REIT with various office and retail condominium assets. On Nov. 17, New York City Advisors, a 10% owner, acquired 1,536 shares at an average price of $7.96 per share, totaling approximately $12,226. The stock closed at $8.17.
Bluerock Homes Trust Inc. (NYSE:BHM) is a New York-based residential REIT focusing on single-family homes in the Sun Belt and Western U.S. On the same day, CFO Christopher J. Vohs purchased 12,000 shares of company stock near the IPO price of $22.50, amounting to $270,000. The most recent closing price for Bluerock Homes was $14.89.
Four Corners Property Trust Inc. (NYSE:FCPT) is a Mill Valley, California-based diversified REIT with a portfolio including restaurants, healthcare, and retail properties. Director Douglas B. Hansen acquired 4,950 shares at $21.74, bringing his total holdings to 59,061 shares. The most recent closing price for Four Corners was $22.75.
On Oct. 25, Modiv Industrial Inc. (NYSE:MDV) director Thomas H. Nolan Jr. purchased 121.2553 shares of Modiv common stock at $14.49, totaling $1,756.98. Nolan now owns 18,524.82 shares. The most recent closing price for Modiv was $15.41.
While insider purchases can provide valuable insights, investors must conduct proper due diligence and not solely rely on this information for making investment decisions.
Weekly REIT Report: Sign up for Benzinga’s Weekly REIT Report to access expert insights and identify lucrative opportunities in the real estate market.
Read Next:
“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with Benzinga Pro – Start Your 14-Day Trial Now!
This article 5 REITs With Recent Insider Buying originally appeared on Benzinga.com
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
