Terry Considine, a director at Apartment Investment & Management Co (AIV), recently picked up 305,375 shares. The buy increased his stake by nearly 20 percent, and came to a total price of just over $2.13 million.
This is the ninth buy from company insiders this year, including both directors and a company executive, totaling over 1 million shares purchased. So far this year, there’s been one sale, also from a director, of just 12,200 shares.
Even with these large share buys, insiders own just 1.8 percent of the company.
The multifamily-focused REIT has performed well in the past year amid a national housing shortage, with shares rising 42 percent, beating the S&P 500 by more than one third. That’s in spite of the fact that the REIT is not yet profitable, and doesn’t pay a dividend.
Action to take: Shares have been somewhat rangebound over the past few months, but may be on the verge of finally moving higher. The company’s slight operating loss in the past year leaves it close to profitability, which in turn could result in the restoration of the dividend.
Traders have a few options they can make. The March $7.50 calls have nearly six months to play out. Shares would need to rise about $1 for the option to move in-the-money. Last trading around $0.75, the option could deliver mid-to-high double-digit shares. Given the small size of the company and limited options, use tight limit orders to get in and out of a trade here.
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.