Board Member Of Sun Communities Makes $258K Buy

Stephanie W Bergeron, Board Member at Sun Communities SUI, reported an insider buy on January 22, according to a new SEC filing.

What Happened: Bergeron 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 Tuesday's morning session, Sun Communities shares are trading at $128.49, showing a down of 0.24%.

Unveiling the Story Behind Sun Communities

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 displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 5.06%. This indicates a notable 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.

Insights into Profitability:

• Gross Margin: The company shows a low gross margin of 50.0%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Sun Communities's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.31.

Debt Management: Sun Communities's debt-to-equity ratio is below the industry average. With a ratio of 0.98, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyzing 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): With a below-average EV/EBITDA ratio of 19.62, Sun Communities presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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Illuminating the Importance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

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.

A Closer Look at Important Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.