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Insider Cluster Buy Reported in Healthcare Trust of America

June 21, 2013 | About:
Monica Wolfe

Monica Wolfe

123 followers
During the past week Healthcare Trust of America (HTA) has reported six insider buys coming from five different insiders. These insider buys came as the price per share dropped down from its recent 52-week high.

CEO Scott Peters made two buys, adding 7,500 shares. He purchased these shares at an average price of $11.25 per share for a total transaction amount of $84,250. Since his most recent buy, the price per share has dropped 3.36%. The CEO currently owns at least 889,783 shares of HTA.

CFO Kellie Pruitt bought 3,000 shares at $11.25 per share. This transaction cost her $33,750. Since her buy, the price per share has decreased -2.93%. Pruitt currently holds on to 191,464 shares of Healthcare Trust of America.

Director Warren Fix bought 1,000 shares of HTA valued at $11.34 per share. This buy cost him a total of $11,340. Since his buy, the price per share has decreased approximately 3.7%. Fix owns 69,229 shares of HTA.

Director Bradley Blair also added 1,000 shares to his stake. His shares traded at an average price of $11.38 per share for a total transaction amount of $11,380. Since his buy, the price per share has dropped about -4.04%. Blair currently owns 63,500 shares of HTA.

Lastly, Executive VP of Acquisitions Mark Engstrom bought 2,500 shares of HTA at an average price of $11.51 per share. This cost the VP a total of $28,775. Since his buy, the price per share has dropped approximately 5.13%. Engstrom currently holds 182,010 shares of HTA.



These insider buys came as the price of the stock dropped down from the 52-week high.

About Healthcare Trust of America

Healthcare Trust of America is a fully integrated, leading owner of medical office buildings. The company is a full-service real estate company focused on acquiring, owning and operating high-quality medical office buildings that are predominately located on or aligned with campuses of nationally or regionally recognized healthcare systems in the U.S.

Recent News for HTA

On Thursday, Healthcare Trust of America fell into oversold territory, meaning that the Relative Strength Index (RSI) for the company fell underneath 30. On Thursday HTA hit an RSI reading of 28.0.

On Monday, June 17, Healthcare Trust of America was added to the Russell Global and Russell 3000 indices. The inclusion of HTA to these indices comes approximately one year after the company listed its shares on the NYSE without raising shareholder equity.

Healthcare Trust of America Financials

Healthcare Trust of America has a market cap of $2.56 billion; its shares were traded at around $10.92 with a P/S ratio of 7.80. The dividend yield for the company is 4.40%.

Healthcare Trust of America listed its shares on the NYSE on June 6, 2012.

The analysis on the company reports:

· The P/B ratio is close to a high of 2.14.

· The P/S ratio is near a low of 8.24.

· The company has already issued $526.587 million of debt.

The company’s historical revenue, net income and price:

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In the March Letter to HTA Stockholders, CEO Scott Peters discusses the company:

We continue to have a strong balance sheet with approximately 33 percent debt to enterprise value, 56 percent of our annual rental revenue is from credit-rated tenants, 91 percent occupancy fundamentals, and HTA’s investment grade rating which allows HTA to obtain attractive loan terms from its lenders, all of which we believe positions HTA to execute its 2013 business plan.

Gurus John Keeley, Jim Simons and Manning & Napier Advisors currently maintain holdings in Healthcare Trust of America. Click here to see the holding histories of HTA.

You can view more insider cluster buys and sells here. Also check out insider buys from CEOs and CFOs. If you haven’t tried the GuruFocus Premium Membership, we invite you to try a free 7-day trial here.

Rating: 2.7/5 (7 votes)

Comments

davidchulak
Davidchulak premium member - 1 year ago
Few things.

I actually love HTA and owned it at one point. A reit is still a different animal than a stock, however; and the mention of P/S, P/B and P/E are meaningless in the analysis of a reit. FFO or Funds From Operations or AFFO Adjusted Funds From Operations are much more important criteria as is debt. It is with AFFO, which is basically a reits free cash flow is what is used for determining discount cash flow intrinsic vale.

Reits also tend to be very sensitive to interest rate hikes. HTA which is known for specializing in MOB's or Medical Office Buildings can be hurt with rate hikes. When it comes to real estate, lower rates are important and the cost of business can suddenliy become expensive.

The insiders have been buying HTA for awhile. I have mixed feelings about the direction of interest rates, but I prefer to not invest based upon what the Feds may do in the next few months. I expect a lot of volatility in this sector especially.

While I believe there's a little room for growth, overall, my numbers on HTA showed it was overall fairly valued. Not enough margin of safety for me.

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