AmREIT Director Brent Longnecker: M Brent Longnecker, Director at AmREIT Inc (NYSE:AMRE)’s board, acquired 1,000 shares of common stock from the company earlier this week. He paid an average price of $16.74 per share, but the stock price is now down to $16.66. He now owns 70,426 shares, valued at $1,173,297.
Over the last three months, Longnecker has been increasing his participation at the firm, having acquired 3,000 shares. However, price swings have not favored him: since his first purchase in mid-August, the stock has lost 9% of its price.
C Chad Braun, COO, CFO, Secretary and Treasurer at the company also acquired stock in the last couple of months. He added 2,000 shares to his portfolio on Aug. 28th, and now owns a total of 143,201 shares, more than double Longnecker’s holdings. In addition, the downside that he has had to absorb since the purchase is considerably lower than Longnecker’s, since Braun paid $16.89 per share on his last buy.
In all, it seems like both insiders wanted to benefit from the dividend payable on Sept. 30th. However, Longnecker’s last acquisition cannot be fully understood at the light of the current news available. Maybe, he is just anticipating the quarterly results to be announced a month from now.
One way or another, this last purchase certainly (or at least) looks interesting: valued substantially below its peers, at 22.9 times its earnings and 5.8 times its sales, AmREIT seems cheap. Especially given its 3.1% return on assets (vs. a 2.2% industry average) and its 25.3% net margin (vs. a 18.3% industry mean). In addition, the company yields about 4.77% of the current stock price in the form of dividends.
Two weeks ago, the company announced the acquisition of the Woodlake Square Shopping Center, a 160,761 square-foot mall in Houston, Texas, anchored by Randalls and Walgreen Company (NYSE:WAG).
Disclosure: Javier Hasse holds no position in any stocks mentioned
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