Istar Inc, a major owner of Safehold Inc (SAFE), has been adding to its stake recently. The company bought 13,644 more shares on September 29, a 0.04 percent increase in its holdings at a cost of just under $1 million.
The company also bought 657,894 shares two days before that, marking a 1.9 percent increase in its holdings and at a cost of just under $50 million.
Overall, insiders own nearly 63 percent of company shares. These insider buys have occurred as shares have dropped over 20 percent from a peak price of nearly $95 back in early August.
The REIT, which helps owners unlock ground leases, is up nearly 16 percent in the past year, a return about half that of the S&P 500. While REITs are known for their dividends, shares yield just under 1 percent.
Action to take: While shares are dropping now, they’re starting to look oversold. Investors may like shares here, at a price where major investors are adding to their stake here.
For traders, look for a clear sign that the downtrend is over, likely in the coming trading days. That will be the time to go long with a call option trade for a rebound. The January $80 calls, which have a bid/ask spread of around $2.75, can likely be bought a bit cheaper in the coming days.
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.