Six directors at Simon Property Group (SPG) recently added to their positions. The buys ranged from $26,756 to $52,793. Each director increased their holdings by about 1 percent.
This is similar to other buys made by Simon directors on a quarterly basis going back over the past few years. Aside from these buys, the company’s Chief Administrative Officer bought nearly $1 million in shares in mid-2021. There have been no insider sales over the last two years.
Overall, Simon insiders own 0.9 percent of shares.
The real estate investment trust focused on retail operations is up about 18 percent over the past year, just slightly lagging the overall stock market.
Revenues rose by 7 percent, and earnings grew by 10 percent.
Simon Property Trust has held up well compared to its peers, as indicated by its 40 percent profit margin.
That’s also put shares on the higher end of the industry range at about 24 times forward earnings.
Action to take: Simon shares have surged nearly 40 percent over the past two months, and are currently overbought.
Investors should wait for a pullback around 10 percent or so from current highs, to the $125 range, before looking to buy.
Simon currently pays a 5.3 percent dividend, but patient investors can get a higher yield.
For traders, SPG likely has some short-term downside in the weeks ahead. The February $135 puts, last going for about $2.55, could see low-to-mid-double-digit returns in the coming weeks.
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 companies mentioned in this article.