Jeffrey Gould, President and CEO at BRT Apartments Corp (BRT), recently added 4,858 shares. The buy increased his holdings by less than 1 percent, and came to a total cost of $90,721.
He was joined by a senior vice president who bought the same quantity on the same day. Over the past year, members of the Gould family have been steady and consistent buyers, with one insider sale from the company COO this year.
Overall, company insiders own 20.2 percent of shares.
The multifamily property developer is down 16 percent over the past year, as investors have shied away from real estate amid rising interest rates.
However, BRT shares trade at 7 times the most recent earnings, and BRT has a 68 percent profit margin, thanks to strong demand for multifamily housing units amid rising mortgage rates.
Action to take: Investors may like shares here, near the stock’s 52-week low. As a REIT, earnings are paid out as dividends, and shares yield about 5.3 percent here. Add in the capital return potential, and investors could fare well at current prices.
For traders, shares have formed a strong base over the past few weeks, and look set for a pop higher. The July $20 calls, last going for about $0.90, offer mid-double-digit returns in the coming months before expiration.
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.