Insider Activity Report: Agree Realty Corporation (ADC)

John Rakolta, a director at Agree Realty Corporation (ADC), recently bought 30,000 shares. The buy increased his holdings by 9 percent, and came to a total cost of $1.72 million.

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  • Insiders have been active buyers over the past two years, with no insider sales during that period. Other recent buys include a 500-share pickup from the company CFO in August, for just under $31,000. And the company COO bought 1,755 shares for just under $110,000.

    Overall, company insiders own 1.6 percent of shares.

    The retail property-focused real estate investment trust (REIT) is down about 17 percent over the past year. Concerns over a slowing commercial market and rising interest rates have weighed on shares.

    However, Agree has been performing well operationally. Revenues are up 24 percent over the past year, and earnings are up 14 percent, even amid concern over a slowing market.

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  • Action to take: Investors may want to start a small position now, and scale in the coming months to take advantage of interest rates peaking. The drop in share price has pushed Agree’s dividend yield up to 5.1 percent.

    For traders, shares are in a downtrend that will likely change as soon as interest rates peak. For now, the January 2024 $50 puts, last going for about $0.70, could see mid-double-digit gains in the months ahead on further weakness.


    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.

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