Jeffrey Gould, President and CEO of BRT Apartments (BRT), recently bought 36,912 shares. The buy increased his stake by 1%, and came to a total cost of $625,469.
This is Gould’s fifth buy so far in April 2024. Other buys have been for smaller amounts, from 12,200 shares to 24,598 shares. The last insider sale was for 1,250 shares by the company COO, who reduced his position by 2%.
Overall, BRT Apartments insiders own 21% of shares.
The owner and operator of apartment buildings is down 11% over the past year, amid rising interest rates, a slowing real estate market, and a rollover in overall rents.
BRT saw revenues rise just 4% over the last 12 months as a result.
However, with interest rates likely to decline, the housing market could see a further increase, which would increase the value of apartment buildings and potentially see an acceleration in rental rates.
Action to take: Investors may like shares for current income. As a REIT, BRT Apartments pays out 90% of its earnings as a dividend. At current prices, shares pay a 6.1% yield.
For traders, the September $17.50 calls, last trading for about $1.00, could see mid-double-digit returns on a shift higher for the REIT in the coming months. Traders should look to take a quick profit on any short-term jump 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 company mentioned in this article.