In a recent transaction, Nicholas S. Schorsch, associated with Bellevue Capital Partners, LLC, a major shareholder of Global Net Lease , Inc. (NYSE:GNL), sold a significant amount of stock in the company. The transactions, which took place between June 18 and June 21, included the sale of 892,71 shares at $7.32, 433,350 shares at $7.19, and 450,000 shares at $7.08. The total value of the shares sold amounted to approximately $6,955,250.
The sales were conducted in multiple transactions with prices ranging from $7.08 to $7.32 per share. According to the footnotes provided in the SEC filing, these sales were made for tax planning purposes, and the prices reported were weighted average prices. Bellevue Capital Partners, LLC, directly held the shares sold.
Following the sales, the reporting entities still hold a substantial number of shares in Global Net Lease, Inc. The exact number of shares owned after the transactions was not disclosed in the summary of the report. However, it is clear that the entities associated with Mr. Schorsch maintain a significant interest in the company.
Investors and the market often keep a close eye on insider transactions as they can provide insights into the company's financial health and future prospects. The selling of shares by a major shareholder such as Bellevue Capital Partners, LLC, and its affiliates, can be of particular interest to current and potential shareholders.
Global Net Lease, Inc., with its significant presence in the real estate investment trusts industry, continues to be a notable entity on the New York Stock Exchange. The company's performance and insider transactions such as these are closely monitored for indications of the company's trajectory and alignment of interests between shareholders and management.
In other recent news, Global Net Lease (GNL) has been the subject of recent developments. B.Riley has adjusted its outlook on GNL, reducing the price target from $12.50 to $11.00, while maintaining a Buy rating. This adjustment is due to a slight decrease in the forecasted Adjusted Funds From Operations (AFFO) per share for fiscal year 2024 and a revision in the expected Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).
In addition, GNL has reported growth in AFFO per share and active leasing for Q1 2024, despite a net loss. The company's asset disposition program is progressing well, with $554 million in closed dispositions. GNL has also completed a significant $237 million commercial mortgage-backed securities (CMBS) refinancing, reducing interest costs and extending debt maturity.
Furthermore, B.Riley anticipates that approximately 70% of the planned asset sales will be finalized in the second half of 2024. These sales are part of GNL's strategy to reduce the company's leverage, aiming to lower the net debt-to-EBITDA ratio from the current 8.4 times to a target range of 7.4 to 7.8 times by the end of 2024. This is in line with GNL's focus on reducing net debt and enhancing net operating income (NOI), as reiterated in their 2024 financial guidance.
InvestingPro Insights
In light of the recent insider transactions at Global Net Lease, Inc. (NYSE:GNL), current and prospective investors may find additional context through InvestingPro Insights. Despite the sale of shares by a major shareholder, InvestingPro Tips suggest that analysts are expecting sales growth in the current year for GNL, which could signal underlying business strength. Additionally, the company is known to pay a significant dividend to shareholders, with a noteworthy dividend yield of 15.45% as of the most recent data.
InvestingPro Data further reveals a substantial revenue growth of 66.67% over the last twelve months as of Q1 2024, with an even more impressive quarterly revenue growth of 118.43% in Q1 2024. However, the company has not been profitable over the same period, reflected in negative EPS figures and a negative P/E ratio of -4.53. The forward-looking PEG ratio stands at 0.01, indicating potential undervaluation if the company's growth expectations materialize.
For those interested in a deeper dive into the financials and forecasts for Global Net Lease, Inc., InvestingPro offers additional tips and metrics that could provide valuable insights into the company's valuation and performance. Access these exclusive insights at https://www.investing.com/pro/GNL, and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 5 more InvestingPro Tips available, which could further inform your investment decisions.
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