Matthew Hirsch, a director at UMH Properties Inc (UMH), recently added 1,750 shares. The buy increased his holdings by 4 percent, and came to a total cost of just under $28,000.
This is one of the larger insider buys at the company over the past few months. Company directors have been small buyers of shares on a regular basis, as well as the company President and CEO. The last insider sale occurred last April.
Overall, company insiders own about 7.3 percent of shares.
The manufactured home community REIT is down about one third over the past year, amid rising interest rates and a slowing real estate market.
Revenues are up 8 percent over the past year, although the REIT has not ben profitable in its most recent quarter.
Action to take: With housing still in a shortage and new unit construction slowing, existing home communities can likely see rents continue to trend higher. UMH yields about 4.9 percent at current prices, and the REIT has recently raised its dividend.
Traders may like the June $15 calls, as shares look ready to trend higher after trading in a tight range for several months. Last going for about $2.25, the option is about $1.50 in-the-money and could see mid-double-digit gains on a move higher in shares in the first half of the year.
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.