Benzinga - by Benzinga Insights, Benzinga Staff Writer.
It was revealed in a recent SEC filing that Arthur A Weiss, Board Member at Sun Communities (NYSE:SUI) made a noteworthy insider purchase on January 22,.
What Happened: Weiss made a significant move by purchasing 2,000 shares of Sun Communities as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $258,019.
Sun Communities's shares are actively trading at $128.8, experiencing a down of 0.0% during Tuesday's morning session.
Discovering Sun Communities: A Closer Look 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.
Sun Communities: A Financial Overview Revenue Growth: Over the 3 months period, Sun Communities showcased positive performance, achieving a revenue growth rate of 5.06% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Real Estate sector.
Analyzing Profitability Metrics:
- Gross Margin: The company issues a cost efficiency warning with a low gross margin of 50.0%, indicating potential difficulties in maintaining 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.
Market Valuation:
- Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 71.16, Sun Communities's stock is perceived as being overvalued in the market.
- Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 5.12, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Sun Communities's EV/EBITDA ratio, lower than industry averages at 19.62, indicates attractively priced shares.
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Why Insider Transactions Are Important Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
The Insider's Guide to Important Transaction Codes Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a 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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