Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Disclosed in the latest SEC filing, a significant insider purchase on January 22, involves Clunet R Lewis, Director at Sun Communities (NYSE:SUI).
What Happened: Lewis demonstrated confidence in Sun Communities by purchasing 2,000 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the transaction is $258,019.
Tracking the Monday's morning session, Sun Communities shares are trading at $128.64, showing a down of 0.43%.
Delving into Sun Communities's Background Sun Communities is a residential REIT that focuses on owning manufactured housing, residential vehicle communities, and marinas. The company currently owns a portfolio of 670 properties, which includes 353 manufactured housing communities, 182 residential vehicle communities, and 135 marina properties. Sun targets owning properties that are desirable as second homes or vacation properties with nearly 50% of the portfolio located in either Florida or Michigan near major bodies of water.
Financial Milestones: Sun Communities's Journey Revenue Growth: Sun Communities's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 5.06%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Real Estate sector.
Exploring Profitability:
- Gross Margin: The company faces challenges with a low gross margin of 50.0%, suggesting potential difficulties in cost control and profitability compared to its peers.
- Earnings per Share (EPS): Sun Communities's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.31.
Assessing Valuation Metrics:
- Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 71.38, Sun Communities's stock is perceived as being overvalued in the market.
- Price to Sales (P/S) Ratio: The P/S ratio of 5.13 is lower than the industry average, implying a discounted valuation for Sun Communities's stock in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Sun Communities's EV/EBITDA ratio at 19.66 suggests potential undervaluation, falling below industry averages.
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Delving Into the Significance of Insider Transactions Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
Cracking Transaction Codes Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.
Check Out The Full List Of Sun Communities's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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