Insider Trading Report: Agree Realty Corporation (ADC)

Joey Agree, President and CEO of Agree Realty Corporation (ADC), recently picked up 3,670 more shares. The buy increased his stake by 0.8 percent, and came to a total purchase price of just under $248,000.

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  • This follows up on two director buys of several hundred shares earlier in the month. Over the past three years, insider buys have greatly exceeded insider sales. Overall, company insiders own 2 percent of shares.

    Shares of the retailer-oriented real estate investment trust (REIT) are up about 7 percent in the past year. The REIT pays a 3.8 percent dividend yield, an above average payout in today’s low interest-rate environment.

    The company’s cash flows mostly go to the dividend, but with retail holding up well, the firm has performed well with a 33 percent profit margin and 43 percent revenue growth.

    Action to take: Investors may like shares. Besides the above-average dividend yield, the dividend has had some growth over the past year, and future dividend hikes could continue.

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  • Shares have dropped in recent weeks, which may have led to insiders buying. Traders might be able to catch excellent returns when shares start to rebound. The January $70 calls, with a bid/ask spread of about $1.60, could be a reasonable buy in the coming weeks on such a sign, where they’ll likely trade a bit more cheaply.

     

    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.