Insider Buying: Director John Rakolta Acquires 20,000 Shares of Agree Realty Corp
On September 26, 2023, John Rakolta, a director at Agree Realty Corp (NYSE:ADC), purchased 20,000 shares of the company, marking a significant insider buying activity. This move is worth noting as it could signal a strong belief in the company's future prospects.
Who is John Rakolta?
John Rakolta is a seasoned business executive and a director at Agree Realty Corp. With a wealth of experience in the real estate industry, Rakolta brings a unique perspective to the company's board. His recent purchase of 20,000 shares underscores his confidence in the company's strategic direction and growth potential.
About Agree Realty Corp
Agree Realty Corp is a leading player in the real estate industry. The company focuses on the acquisition and development of properties net leased to industry-leading retail tenants. With a robust portfolio of assets spread across the United States, Agree Realty Corp has established a strong presence in the retail real estate market.
Insider Buying Analysis
Over the past year, John Rakolta has purchased a total of 108,995 shares and sold 0 shares. This recent purchase of 20,000 shares further strengthens the insider's position in the company.
The insider transaction history for Agree Realty Corp shows a total of 20 insider buys over the past year, with zero insider sells over the same timeframe. This trend of insider buying could be a positive signal for potential investors, as it often indicates that those with the most intimate knowledge of the company believe its stock is undervalued.
Agree Realty Corp's Valuation
On the day of the insider's recent buy, shares of Agree Realty Corp were trading at $55.73, giving the company a market cap of $5.33 billion.
The company's price-earnings ratio stands at 31.44, which is higher than the industry median of 16.57 and also higher than the companys historical median price-earnings ratio. This suggests that the stock is currently trading at a premium compared to its peers and its own historical standards.
However, with a price of $55.73 and a GuruFocus Value of $75.82, Agree Realty Corp has a price-to-GF-Value ratio of 0.74. This indicates that the stock is modestly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance.
In conclusion, the recent insider buying activity by John Rakolta, coupled with the company's modest undervaluation, could make Agree Realty Corp an attractive investment opportunity.
This article first appeared on GuruFocus.
