Big Investors are Trading DaVita and More

Christian Leone’s Luxor Capital increased its stake in commercial real estate REIT American Realty Capital Trust Inc (NASDAQ:ARCT) to a total of 15 million shares, of 9.5% of the shares outstanding. The current dividend yield is 5.7%, based on monthly dividend payments of 6 cents per share (though the company has been publicly traded for less than a year). Funds from operations- which is a better “profitability” metric to use than earnings when analyzing REITs- have been up and the trailing P/FFO multiple is 17. We aren’t sure of it being a good value, but an income investor who likes the dividend yield may be interested in doing more research on the company.

Mitcham Industries, Inc. (NASDAQ:MIND), which is primarily a lessor of seismic and geological equipment, had Ariel Investments report a position of 2.1 million shares, or 16% of the company. Ariel is managed by John Rogers (research Ariel’s favorite stocks). Mitcham’s market capitalization is only $180 million, but about 110,000 shares are traded daily and the current price is about $14 so there is over $1 million in daily dollar volume. After a 41% drop in the stock price in the last year, Mitcham has trailing and forward P/E multiples of 8.

Disclosure: I own no shares of any stocks mentioned in this article.