Over the past week three companies have reported multiple insider buys as their price hits or nears 52-week lows. Looking at insider buys while they’re trading at low prices can offer an excellent time to buy into a company or further your research on the company. Peter Lynch once offered that insiders will sell their shares in a company for many reasons, but they will only invest it if they think that the share price will rise.
The following three companies are trading at or within 5% of their 52-week low share price and reported insider buys over the past week.
Digital Realty Trust (DLR)
Over the past week there were two insiders making buys as Digital Realty Trust’s price continued to drop to new historical lows.
Chief Acquisitions Officer Scott Peterson added 4,000 shares to his holdings on Dec. 3. He bought these shares at an average price of $44.00 per share. The transaction cost the CAO a total of $176,000. Since then the price per share has increased 1.18%.
Director William Laperch purchased a smaller 2,000 shares. He bought these shares at an average price of $45.80 per share. This transaction cost him $91,600. Since then the price per share has dropped approximately -2.79%.
The company’s insider buying has increased as the company’s share price has dwindled down to a historic low.
Digital Realty Trust is engaged in the business of owning, acquiring, developing, redeveloping and managing technology-related real estate.
Digital Realty Trust’s historical revenue and earnings growth:
The company recently announced that its Arizona data centers have been certified under the Arizona Computer Data Center program, meaning that the company is now qualified in the state of Arizona for its data operation centers. These incentives may come in the form of exemptions from all state, county and local transaction privilege taxes.
Digital Realty’s third quarter results reported:
· FFO per share of $1.10, down from $1.13 per share last year.
· Signed leases expected to generate $47.3 million in annualized GAAP rental revenue.
· Closed a $369 million joint venture at a 6.7% cap rate.
· Announced a $500 share repurchase authorization.
Digital Realty Trust has a market cap of $5.8 billion. Its shares are currently trading at around $45.12 with a P/E ratio of 21.20, a P/S ratio of 4.00 and a P/B ratio of 1.90. The dividend yield of Digital Realty is currently at 6.80%. The company had an annual average earnings growth of 12.20% over the past five years.
MFA Financial (MFA)
Over the past week there were four insiders making buys back into MFA Financial. These insiders consisted of: Senior VP Sunil Yadav, Executive VP Ronald Freydberg, President William Gorin and Executive VP Craig Knutson.
SVP Yadav purchased a total of 1,800 shares at a price of $7.22 per share. This transaction cost him a total of $12,996. Since his buy, the price per share is down about -0.14%. Yadav now holds on to at least 111,356 shares of the company’s stock.
Freydberg added the most, purchasing 6,000 shares of MFA Financial. The insider bought these shares at $7.14 per share for a total transaction amount of $42,840. Since his buy the price per share is up a slight 0.98%. The VP now holds on to at least 974,848 shares of the company’s stock.
William Gorin added 2,000 shares to his holdings over the past week. He bought these shares at $7.15 per share for a total transaction amount of $14,300. Since his buy the price per share is up about 0.84%. The president now holds on to about 671,852 shares of the company’s stock.
Lastly Craig Knutson purchased 5,000 shares last week. He bought these shares for $7.13 per share for a total transaction amount of $35,650. Since his most recent purchase the price per share is up approximately 1.12%. Knutson now holds on to at least 313,632 shares of company stock.
MFA Financial is a self-advised REIT that owns and manages a portfolio of residential mortgage-backed securities, primarily secured by pools of hybrid and adjustable-rate mortgage loans on single family residences.
MFA Financial’s historical revenue and net income:
The analysis on MFA Financial reports that the company’s operating margin is expanding, its dividend yield is at a 1-year high and its P/B and P/S ratios are trading at around historical lows.
The company’s third quarter results highlighted:
· Net income per common share of $0.19 and core earnings per common share of $0.18.
· Loss-adjusted yield on MFA’s non-agency portfolio increased from 7.15% to 7.33%.
· Book value per common share of $7.85.
· Net income allocable to common shareholders of $67.3 million.
The Peter Lynch Chart suggests that the company is currently undervalued:
MFA Financial has a market cap of $2.63 billion. Its shares are currently trading at around $7.19 with a P/E ratio of 9.20, a P/S ratio of 7.60 and a P/B ratio of 0.90. The dividend yield of MFA Financial is at 11.90%.
Garrison Capital (GARS)
Over the past week there were two insiders making buys into Garrison Capital as its price falls to a 52-week low.
CEO Joseph Tansey reported a buy of 2,065 shares on December 2. He bought these shares at an average price of $14.50 for a total transaction amount of $29,943. Since his buy the price per share is up about 1.45%. The CEO now holds on to 583,972 shares of the company’s stock.
Also last week Director Bruce Shewmaker added a much smaller 500 shares to his holdings. The director bought these shares at the price of $14.30 per share. This cost him a total of $7,150. Since his buy the price per share is up about 2.87%. Shewmaker now holds on to at least 3,500 shares of the company’s stock.
These are the first insider buys reported since the company’s initial public offering in April.
Garrison Capital is a business development company that invests primarily in the debt and equity of middle-market companies. Their investment objective is to generate current income and capital appreciation by making investments primarily in debt securities and loans of U.S. based middle-market companies.
Garrison Capital’s historical pricing:
The analysis on Garrison Capital reports that the company’s dividend yield is near a 1-year high, its cash flow from operations significantly differs from its reported net income and its P/E ratio is near a 1-year low.
The company recently released its third quarter results which reported:
· Net increase in net assets was $6.7 million, or $0.40 per share.
· Net investment income of $5.9 million, or $0.35 per share.
· Net realized losses of $(5.7) million or $(0.34) per share.
· Fourth quarter dividend of $0.35 per share, payable on Dec. 27.
Garrison Capital has a market cap of $243.9 million. Its shares are currently trading at around $14.56 with a P/E ratio of 13.00, a P/S ratio of 9.40 and a P/B ratio of 1.00. The dividend yield of Garrison Capital stocks is currently at 4.70%.
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The following three companies are trading at or within 5% of their 52-week low share price and reported insider buys over the past week.
Digital Realty Trust (DLR)
Over the past week there were two insiders making buys as Digital Realty Trust’s price continued to drop to new historical lows.
Chief Acquisitions Officer Scott Peterson added 4,000 shares to his holdings on Dec. 3. He bought these shares at an average price of $44.00 per share. The transaction cost the CAO a total of $176,000. Since then the price per share has increased 1.18%.
Director William Laperch purchased a smaller 2,000 shares. He bought these shares at an average price of $45.80 per share. This transaction cost him $91,600. Since then the price per share has dropped approximately -2.79%.
The company’s insider buying has increased as the company’s share price has dwindled down to a historic low.
Digital Realty Trust is engaged in the business of owning, acquiring, developing, redeveloping and managing technology-related real estate.
Digital Realty Trust’s historical revenue and earnings growth:
The company recently announced that its Arizona data centers have been certified under the Arizona Computer Data Center program, meaning that the company is now qualified in the state of Arizona for its data operation centers. These incentives may come in the form of exemptions from all state, county and local transaction privilege taxes.
Digital Realty’s third quarter results reported:
· FFO per share of $1.10, down from $1.13 per share last year.
· Signed leases expected to generate $47.3 million in annualized GAAP rental revenue.
· Closed a $369 million joint venture at a 6.7% cap rate.
· Announced a $500 share repurchase authorization.
Digital Realty Trust has a market cap of $5.8 billion. Its shares are currently trading at around $45.12 with a P/E ratio of 21.20, a P/S ratio of 4.00 and a P/B ratio of 1.90. The dividend yield of Digital Realty is currently at 6.80%. The company had an annual average earnings growth of 12.20% over the past five years.
MFA Financial (MFA)
Over the past week there were four insiders making buys back into MFA Financial. These insiders consisted of: Senior VP Sunil Yadav, Executive VP Ronald Freydberg, President William Gorin and Executive VP Craig Knutson.
SVP Yadav purchased a total of 1,800 shares at a price of $7.22 per share. This transaction cost him a total of $12,996. Since his buy, the price per share is down about -0.14%. Yadav now holds on to at least 111,356 shares of the company’s stock.
Freydberg added the most, purchasing 6,000 shares of MFA Financial. The insider bought these shares at $7.14 per share for a total transaction amount of $42,840. Since his buy the price per share is up a slight 0.98%. The VP now holds on to at least 974,848 shares of the company’s stock.
William Gorin added 2,000 shares to his holdings over the past week. He bought these shares at $7.15 per share for a total transaction amount of $14,300. Since his buy the price per share is up about 0.84%. The president now holds on to about 671,852 shares of the company’s stock.
Lastly Craig Knutson purchased 5,000 shares last week. He bought these shares for $7.13 per share for a total transaction amount of $35,650. Since his most recent purchase the price per share is up approximately 1.12%. Knutson now holds on to at least 313,632 shares of company stock.
MFA Financial is a self-advised REIT that owns and manages a portfolio of residential mortgage-backed securities, primarily secured by pools of hybrid and adjustable-rate mortgage loans on single family residences.
MFA Financial’s historical revenue and net income:
The analysis on MFA Financial reports that the company’s operating margin is expanding, its dividend yield is at a 1-year high and its P/B and P/S ratios are trading at around historical lows.
The company’s third quarter results highlighted:
· Net income per common share of $0.19 and core earnings per common share of $0.18.
· Loss-adjusted yield on MFA’s non-agency portfolio increased from 7.15% to 7.33%.
· Book value per common share of $7.85.
· Net income allocable to common shareholders of $67.3 million.
The Peter Lynch Chart suggests that the company is currently undervalued:
MFA Financial has a market cap of $2.63 billion. Its shares are currently trading at around $7.19 with a P/E ratio of 9.20, a P/S ratio of 7.60 and a P/B ratio of 0.90. The dividend yield of MFA Financial is at 11.90%.
Garrison Capital (GARS)
Over the past week there were two insiders making buys into Garrison Capital as its price falls to a 52-week low.
CEO Joseph Tansey reported a buy of 2,065 shares on December 2. He bought these shares at an average price of $14.50 for a total transaction amount of $29,943. Since his buy the price per share is up about 1.45%. The CEO now holds on to 583,972 shares of the company’s stock.
Also last week Director Bruce Shewmaker added a much smaller 500 shares to his holdings. The director bought these shares at the price of $14.30 per share. This cost him a total of $7,150. Since his buy the price per share is up about 2.87%. Shewmaker now holds on to at least 3,500 shares of the company’s stock.
These are the first insider buys reported since the company’s initial public offering in April.
Garrison Capital is a business development company that invests primarily in the debt and equity of middle-market companies. Their investment objective is to generate current income and capital appreciation by making investments primarily in debt securities and loans of U.S. based middle-market companies.
Garrison Capital’s historical pricing:
The analysis on Garrison Capital reports that the company’s dividend yield is near a 1-year high, its cash flow from operations significantly differs from its reported net income and its P/E ratio is near a 1-year low.
The company recently released its third quarter results which reported:
· Net increase in net assets was $6.7 million, or $0.40 per share.
· Net investment income of $5.9 million, or $0.35 per share.
· Net realized losses of $(5.7) million or $(0.34) per share.
· Fourth quarter dividend of $0.35 per share, payable on Dec. 27.
Garrison Capital has a market cap of $243.9 million. Its shares are currently trading at around $14.56 with a P/E ratio of 13.00, a P/S ratio of 9.40 and a P/B ratio of 1.00. The dividend yield of Garrison Capital stocks is currently at 4.70%.
You can check out all insider buys at 52-week lows by using the GuruFocus All-in-One Screener.
Try a free 7-day premium membership here.
