CTO Realty Growth, Inc. (NYSE:CTO), a real estate investment trust, has made a recent purchase of shares in Alpine Income Property Trust, Inc. (NYSE:PINE), according to a new SEC filing. The transactions, which occurred on May 28 and 29, 2024, saw CTO Realty Growth acquiring a total of 294 shares of Alpine Income Property Trust at prices ranging from $14.97 to $15.00 per share, amounting to a total investment of approximately $4,406.
The purchases were conducted under a Rule 10b5-1 trading plan, which was previously adopted by the reporting entity on February 28, 2023. Rule 10b5-1 trading plans allow insiders to buy or sell a predetermined number of shares at a predetermined time, providing them with a defense against accusations of trading on nonpublic information, as long as the plan was established when the insider was not in possession of material non-public information.
CTO Realty Growth, which operates under the umbrella of the broader 05 Real Estate & Construction sector, has shown an interest in increasing its stake in the common stock of Alpine Income Property Trust. Following these transactions, the company now indirectly owns 173,405 shares through CTO TRS Crisp39 LLC, a wholly owned subsidiary, as detailed in the footnotes of the SEC filing.
Investors often watch insider buying and selling activity as an indicator of a company's prospects and management's view of the stock's valuation. In this instance, the additional shares acquired by CTO Realty Growth suggest a continued commitment to its investment in Alpine Income Property Trust.
Alpine Income Property Trust, which is also a real estate investment trust, specializes in owning and operating a portfolio of high-quality, single-tenant commercial properties. The trust is known for its focus on tenants that provide necessity-based retail services.
The filing was signed by Daniel E. Smith, Senior Vice President, General Counsel & Corporate Secretary of CTO Realty Growth, Inc. on May 30, 2024. The continued investment by CTO Realty Growth in Alpine Income Property Trust is a move that market watchers and investors in the real estate investment sector will likely follow with interest.
InvestingPro Insights
As CTO Realty Growth, Inc. increases its holdings in Alpine Income Property Trust, Inc., a closer look at Alpine's financial health and strategic moves offers valuable insights. Alpine, which trades under the ticker PINE, has been actively returning value to shareholders, as evidenced by its consistent dividend growth over the last five years. This commitment to shareholder returns is further underlined by a substantial dividend yield of 7.32% as of the most recent data.
On the strategic front, Alpine's management has demonstrated confidence in the company's future by aggressively repurchasing shares. Share buybacks can often signal management's belief in undervalued stock and a commitment to enhancing shareholder value. This aligns with the investment thesis that may underpin CTO Realty Growth's increased stake in Alpine.
InvestingPro Data metrics reveal a mixed financial picture for Alpine. The company's market capitalization stands at $223 million, with a high gross profit margin of 84.3% in the last twelve months as of Q1 2024. However, Alpine is grappling with profitability challenges, as the P/E ratio is deeply negative at -308.98, and analysts have revised their earnings expectations downwards for the upcoming period. Additionally, Alpine is trading at a high EBIT valuation multiple, suggesting that the market has high expectations for future earnings growth.
For investors considering following CTO Realty Growth's lead, it's worth noting that there are 9 additional InvestingPro Tips available for Alpine Income Property Trust on InvestingPro. These tips could provide further context on the company's financials and market position. To access these insights and more, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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