Director John Rakolta Acquires 20,430 Shares of Agree Realty Corp (ADC)
On February 16, 2024, Director John Rakolta made a significant purchase of shares in Agree Realty Corp (NYSE:ADC), acquiring 20,430 shares as reported in a recent SEC Filing. This transaction has added to the insider's notable activity over the past year, where the insider has purchased a total of 131,760 shares and has not sold any shares.
Agree Realty Corp is a real estate investment trust primarily engaged in the acquisition and development of properties net leased to industry-leading retail tenants. The company's portfolio consists of assets in various sectors, including retail, automotive, and restaurants, among others.
Insider transactions provide valuable insights into a company's health and management's perspective on the stock's value. An insider buy, such as the one executed by the insider, can indicate confidence in the company's future prospects or that the insider believes the stock is undervalued. Conversely, insider sells might suggest that those with the most intimate knowledge of the company's workings believe the stock price may not rise further or that it's a good time to realize gains.
The insider transaction history for Agree Realty Corp shows a pattern of insider confidence, with 27 insider buys and no insider sells over the past year.
On the valuation front, Agree Realty Corp's shares were trading at $57 on the day of the insider's purchase, resulting in a market cap of $5.732 billion. The price-earnings ratio stands at 33.35, which is above both the industry median of 16.77 and the company's historical median price-earnings ratio, suggesting a premium compared to its peers and its own trading history.
However, with a price of $57 and a GuruFocus Value of $65.41, Agree Realty Corp has a price-to-GF-Value ratio of 0.87, indicating that the stock is considered Modestly Undervalued according to the GF Value metric. The GF Value is a proprietary intrinsic value estimate from GuruFocus, which factors in historical trading multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.
The recent insider buying activity, coupled with the GF Value assessment, may suggest that the insider sees an opportunity in the stock at its current price. Investors often look to insider transactions as one of many tools to gauge the potential direction of a stock.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
