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Tip Ranks
3 Equities Clear signs of strong purchases of inside information
For investors, finding the right sign is part of the game. Stocks don’t necessarily choose for themselves, and investors who choose them need to know they are making the right choice. Fortunately for investors – and for the safety of their portfolios – there are reliable signals that a stock is worth buying. One of the best is buying inside information – insiders are corporate officers, deeply invested in the success or failure of their company, usually the shareholders themselves, but more responsible for their own portfolio. Corporate executives are tied to their boards of directors, their fellow executives in the company, and the stock-owner public to ensure profits and returns on the shares – and so, when these insiders start buying large blocks, investors should take notice. . insider transactions, using publicly published stock moves to track them. The Insiders’ Hot Stocks page provides the scoop on what stock market insiders are buying or selling so you can make informed purchases. We picked three actions with recent informative purchases to show how data works for you. Agree Realty Corporation (ADC) The first on the list is a major company in the REIT segment. Agreement Realty, based in Metro Detroit, focuses on the acquisition and development of properties for big-name retail tenants. At the end of 3Q20, Agree’s portfolio included 1,027 properties in 45 states, for a total of approximately 21 million square feet of lettable area. Tenants of the firm include 7-Eleven, AutoZone, Dollar General and Wendy’s franchise, among many others. Accord’s third-quarter results, reported earlier this month, showed a sequential increase in EPS by 76 cents. at 80 cents and a total rental income of $ 63.7 million. The company posted a quarterly record of $ 470.7 million in rental property investments and increased its dividend. The 60 cents equity dividend gives investors a 3.67% yield, all at a time when many REITs have reported difficulties in collecting rents as tenants have had to cope with the financial repercussions of the crown crisis. In this area, however, Agree has been remarkably successful. The company reported receiving 96%, 97% and 99% of the rents due in July, August and September. I accept has deferral agreements for another 2% of its tenants. This success in collecting rent provided the basis for the solid quarterly income stream already noted. On October 22, Agree saw a large insider trade. CEO and president Joey Agree bought 15,293 shares, paying out over $ 1 million. This brings the sentiment of the insiders here into positive territory. Concerning this stock for Raymond James, analyst RJ Milligan writes: “With rent collection at 99% for September, ADC continues to offend while most colleagues are still tracking rents. We believe the large increase in driving to ‘acquisition will push Street’s estimates significantly higher for 2021/2022, which is likely to serve as the positive catalyst ADC investors have been waiting for. “Milligan views the stock as a strong buy and sets a price target of $ 82. indicating room for upward growth of 27% over the next year. (To see Milligan’s track record, click here) Overall, ADC achieves a Strong Buy consensus rating, based on unanimous 5 recently provided purchase reviews. ADC shares are selling for $ 64.61 and their average price target of $ 74.38 makes the one-year up 14%. (See the analysis of ADC shares on TipRanks) First American Financial (FAF) Next on our list is First American Financial, a securities insurance company and credit institutions. FAF is a staple of the mortgage industry, where its insurance products are essential in securing home loans. The company also deals with property and casualty policies and posted total revenues of $ 6.2 billion last year After seeing sharp drops to highs and profits in the first quarter of this year during the economic downturn. triggered by the coronavirus pandemic, the FAF has seen a clear recovery. The company experienced sequential revenue growth in the second and third quarters, with revenue growing from $ 1.4 billion in the first quarter to $ 1.6 billion in the second and finally $ 1.9 billion in the third. quarter. Third quarter earnings grew 24% to $ 1.31 per share. FAF recently saw a major buy from insiders. It wasn’t a million dollars, but the $ 191,000 purchase of 4,000 shares was still significant and gave the stock a positive internal sentiment. The buyer was Mark Oman of the Board of Directors, among the FAF fans is Mark Hughes, 5-star analyst at Truist Financial. The analyst assigns the stock a buy rating with a price target of $ 66 to suggest a 41% rise over the next 12 months. (To see Hughes’ track record, click here) Backing his position, Hughes observes the steady flow of business for the company, writing: “Open buy orders last month were 2,500 per day, with a 21% year-over-year increase. This compared to July’s total of 2,400 per day, which increased 6% from the same month last year. In the refi category, the daily number remained steady sequentially at 3,200, up 46% from August 2019. “” Our price target of $ 66 assumes shares are trading at just under 15 times our earnings estimate for 2021, at the upper end of the recent range for companies in the title – we believe this is appropriate in light of the industry’s healthy fundamentals – but still at a larger than usual discount to the S&P 500, ”concluded the analyst. Hughes’ review is one of two recent recommendations recorded for the FAF, making analyst consensus here a moderate buy. The median price target is $ 65, giving the stock a potential upside of 39% from its current share price of $ 46.62. (See FAF Stock Analysis on TipRanks) Eastern Bankshares (EBC) The latest stock on our list is a new one to the market. Easter Bankshares is a holding company, owner of the Eastern Bank, a Massachusetts-based community bank and the oldest joint bank in the United States. Earlier this month, Eastern conducted a move from mutual organization status to a public company, selling over 179 million common stock. The offering price was $ 10 per share, and the sale grossed over $ 1.79 billion for the company. And this is where insider trades come into play. Eastern corporate officials made large stock purchases during the IPO. Company CEO and Chairman of the Board Robert Rivers made the largest single purchase, for $ 2 million, and Executive Vice President Barbara Heinemann bought $ 1.02 million in stock. Five members of the board of directors made purchases in excess of $ 1 million or more, for the most part it was company executives making their personal stakes in the company and making up stock holdings as part of their compensation packages. It is routine in the corporate world. But these large stock purchases – 7 out of at least $ 1 million and 10 more from $ 200,000 or more – show confidence in the company and a willingness to put their own skin on the line. Speaking to the analyst community, analyst Laurie Havener, who oversees this new stock for Compass Point, wrote, “We love the story of EBC as it offers investors a unique opportunity to invest in a bank based in Boston with over 200 years of overly well-capitalized capital, substantially below the book. EBC has a desirable franchise footprint, ranking 5 in the Boston MSA, with a fabulous low-cost deposit base. ” To that end, Havener rates EBC at Buy alongside a price target of $ 15, suggesting that this banking holding has room for upward growth of 24% in the year ahead (to see Hunsicker’s track record, click here) Judging by the split of consensus, he’s been relatively quiet when it comes to other analyst activities. In the past few weeks, only 2 analysts have looked into the bank. Both, however, were bullish, making the consensus a moderate buy. (See EBC Stock Analysis on TipRanks) Disclaimer: The views expressed in this article are solely those of the analysts featured. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investments.
