John Rakolta, a director at Agree Realty (ADC), recently bought 13,335 shares. The buy increased his position by 4 percent, and came to a total cost just under $833,000.
The buy came a few weeks after another director bought 1,700 shares, for just over $103,000, and the company CEO bought 1,300 shares, paying just over $76,000. Over the past year, company executives and directors have been steady buyers of shares on over a dozen occasions.
Overall, Agree Realty insiders own 1.6 percent of shares.
Shares dropped about 10 percent over the past year, as the retail REIT stayed out of favor with the market. Rising interest rates and sluggish consumer spending on goods weighed on shares.
However, Agree is well run, and managed to increase revenues by 24 percent last year, and earnings grew by 5 percent. Plus, Agree’s profit margin hit 32 percent last year, a sign that operations are running well, even in a challenging environment.
Action to take: Shares are in an uptrend, which is likely to continue. As a REIT, the company is structured to pay a high dividend. The current yield is 4.7 percent, and there have been slight increases to that payout over time.
For traders, the April $65 calls, last going for about $2.05, stand to move in-the-money in the coming months, and could see mid-to-high double-digit returns.
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.