Insiders Bought Retail Properties of America, Should You?

Page 1 of 2

According to a Form 4 filed with the SEC, Kenneth Masick purchased 4,700 shares of Retail Properties of America Inc (NYSE:RPAI) on December 14th at an average price of $11.92 per share. Masick serves on the company’s Board of Directors and so this transaction had to be reported as an insider purchase. This gives Masick a total of 7,700 shares held directly; he had bought the other 3,000 shares in late August, at an average price of $11.11. Retail Properties of America is a $2.8 billion market cap real estate investment trust owning shopping centers in 35 states. The stock is up 32% from its levels shortly after its April IPO.

RPAI logo

By reviewing our database of insider trading filings, we can see that another Board member was buying the stock in mid-December (see a history of insider purchases at Retail Properties of America). We like to track insider purchases because on average they tend to be bullish signs; insiders have many reasons to sell a stock (including diversification), but actual buying would generally be taken to indicate confidence in the company. Studies bear this out (read our review of studies on insider trading). In particular, when there are multiple insiders buying a stock- “consensus insider buying”- it’s particularly likely (though not certain) that the stock will outperform (find out more about strategies that monkey insider trades).

Funds from operations- which is used to evaluate the “earnings” of REITs, rather than net income- increased by 24% in the third quarter of 2012 compared to the same period a year ago, a slight acceleration from performance in the first half of the year. However, as with many REITs, the attractive feature of Retail Properties of America Inc is a high dividend yield and so for many investors interested in the stock value analysis will play second fiddle to income prospects. Since going public the company has made two quarterly dividend payments, which imply a yield of 5.6%. Retail Properties of America has over $100 million in cash and cash equivalents and good cash flow from operations. However, while the stock has not been traded long enough to calculate a useful beta statistic, we would expect that a company tied to retail would have significant exposure to the overall economy.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!