Benzinga - by Benzinga Insights, Benzinga Staff Writer.
On December 21, a substantial insider purchase was made by Jeffrey Alan Jones, Board Member at Whitestone REIT (NYSE:WSR), as per the latest SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled that Jones made a notable purchase of 4,824 shares of Whitestone REIT, valuing at $60,010.
Whitestone REIT's shares are actively trading at $12.21, experiencing a down of 0.41% during Friday's morning session.
Unveiling the Story Behind Whitestone REIT Whitestone REIT is a real estate investment trust (REIT) engaged in owning and operating commercial properties in culturally diverse markets in metropolitan areas. Its property portfolio includes retail and office/flex properties. The company's properties are located in business-friendly locations in and around Austin, Chicago, Dallas-Fort Worth, Houston, Phoenix, and San Antonio. The organization derives revenue in the form of rental revenues.
Unraveling the Financial Story of Whitestone REIT Revenue Growth: Whitestone REIT's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 4.96%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Real Estate sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Exploring Profitability:
- Gross Margin: The company faces challenges with a low gross margin of 69.21%, suggesting potential difficulties in cost control and profitability compared to its peers.
- Earnings per Share (EPS): Whitestone REIT's EPS reflects a decline, falling below the industry average with a current EPS of 0.05.
Financial Valuation:
- Price to Earnings (P/E) Ratio: The P/E ratio of 16.35 is lower than the industry average, implying a discounted valuation for Whitestone REIT's stock.
- Price to Sales (P/S) Ratio: The current P/S ratio of 4.23 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 11.92, Whitestone REIT's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation
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The Impact of Insider Transactions on Investments Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Breaking Down the Significance of Transaction Codes Examining transactions, investors often concentrate on those unfolding in the open market, meticulously 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 indicates 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 Whitestone REIT's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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