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Monica Wolfe
Monica Wolfe
Articles (757) 

American Realty Reports Dividend Growth and Six Insider Buys

April 12, 2013 | About:

On April 11, six different insiders made buys into American Realty Capital Properties (ARCP). These insiders bought over 113,000 shares of company stock at an average price of $15.67.

Chairman of the Board and CEO Nicholas Schorsch started the day by adding 30,000 shares at $15.69 per share. This transaction cost him $470,700. Schorsch has proven to be a keen investor in his own company. To view the complete list of Schorsch’s insider buys and sells, click here.

Co-Founder and Director William Kahane, and Executive Vice President and CIO Peter Budko also added 30,000 shares each at a price of $15.69 per share.

President and COO Michael Weil, and Executive Vice President and CFO Brian Block both added 10,000 shares at $15.69 per share. Their transactions cost them each $156,900.

Finally, COO Brian Jones added 3,000 shares to his stake at an average price of $15.56. This transaction cost him $46,680.

Since the last insider cluster buy, the price of the stock has increased an average of $2.03 or approximately 28%.

According to the GuruFocus analysis, the company has exceeded its previous two-year high price of $15.97. Also, the P/S Ratio is close to a one-year high of 8.82.

American Realty is an investment advisory firm sponsoring investment programs with an emphasis on publicly registered non-traded real estate offerings. The company primarily owns and acquires single tenant freestanding commercial real estate that is net leased on a medium-term basis.

On March 18, American Realty increased its monthly dividend by 1.1% to $0.076 per month. The dividend yield based on this new payout is 6.5%.

Market Cap: 208.8 M P/E: n/a Shiller P/E: n/a
P/B: 2.7 P/S: 8.82 EV/EBITDA: 38.87
52 Week Low: 9.77 52 Week High: 16.65 Average Volume: 5.59 M

Jim Simons holds 132,000 shares of American Realty.

With its shares up 4.2%, American Realty trades at $16.64.
  • CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
  • Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
  • Double Buys:: Companies that both Gurus and Insiders are buying
  • Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.

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Rating: 3.3/5 (7 votes)


SeaBud premium member - 4 years ago
I have owned American Realty since before it went public. They have built a nice NNN portfolio of credit quality leases that will be stable for 6-10 years. HOWEVER, their success is also built on financing and the stability/rollover of these leases, which is not 100%. The combination of turning over debt at higher rates with expiring leases at stable or lower rents could cause issues (alternative is to sell the NNN lease but higher interest/cap rates will reduce value substantially). Again, this is a 5-6 year out problem based on rising interest rates that may never happen and not a concern for the next 3-5 years where the dividend should be quite stable.

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