Insider Move: GARY CRITTENDEN Invests $199K In Extra Space Storage Stock

A new SEC filing reveals that GARY CRITTENDEN, Director at Extra Space Storage EXR, made a notable insider purchase on May 28,.

What Happened: In a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, it was disclosed that CRITTENDEN bought 1,402 shares of Extra Space Storage, amounting to a total of $199,967.

The latest update on Wednesday morning shows Extra Space Storage shares down by 3.03%, trading at $138.05.

Unveiling the Story Behind Extra Space Storage

Extra Space Storage is a fully integrated real estate investment trust that owns, operates, and manages almost 3,700 self-storage properties in 42 states, with over 280 million net rentable square feet of storage space. Of these properties, approximately one half is wholly owned, while some facilities are owned through joint ventures and others are owned by third parties and managed by Extra Space Storage in exchange for a management fee.

Unraveling the Financial Story of Extra Space Storage

Revenue Growth: Extra Space Storage's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 58.94%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Real Estate sector.

Navigating Financial Profits:

• Gross Margin: The company maintains a high gross margin of 72.11%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Extra Space Storage's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.01.

Debt Management: Extra Space Storage's debt-to-equity ratio is below the industry average. With a ratio of 0.8, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 33.18, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 9.39 is above industry norms, reflecting an elevated valuation for Extra Space Storage's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 20.58, Extra Space Storage demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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Delving Into the Significance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Transaction Codes To Focus On

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 Extra Space Storage's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.