Insider Activity Report: Arbor Realty Trust (ABR)

Ivan Kaufman, CEO at Arbor Realty Trust (ABR) recently bought 35,000 shares. The buy increased his stake by 1 percent, and came to a total cost of $426,450.

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  • He was joined by the company CFO, who bought 10,000 shares on two separate transactions, for just under $123,000. A company director has also been a buyer in recent weeks. Going further back, insider buys have far exceeded insider sales.

    Overall, Arbor insiders own about 2.2 percent of shares.

    The mortgage REIT is down about 20 percent over the past year, as rising interest rates have weighed on the value of financial assets.

    Even with lower demand, revenue and earnings are both up about 20 percent each over the past year. And with shares down, the stock trades at about a 10 percent discount to its book value of loans.

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  • Action to take: As a real estate investment trust (REIT), Arbor is required to pay out at least 90 percent of its earnings as a dividend. At current prices, shares yield 14.3 percent. That makes this a high-income opportunity for investors looking for current income.

    For traders, shares may see some move higher in the next year if interest rates moderate. The April 2024 $12.50 calls, last going for about $1.15, could see mid-double-digit returns from such a trend higher.


    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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