Insider Move: Julia Ploeg Vander Invests $199K In Extra Space Storage Stock

It was revealed in a recent SEC filing that Julia Ploeg Vander, Board Member at Extra Space Storage EXR made a noteworthy insider purchase on May 28,.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Vander purchased 1,402 shares of Extra Space Storage. The total transaction amounted to $199,967.

As of Wednesday morning, Extra Space Storage shares are down by 3.03%, currently priced at $138.05.

All You Need to Know About 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.

Key Indicators: Extra Space Storage's Financial Health

Revenue Growth: Extra Space Storage's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 58.94%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Real Estate sector.

Exploring Profitability:

• Gross Margin: The company sets a benchmark with a high gross margin of 72.11%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Extra Space Storage's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend 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.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 33.18 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 9.39, Extra Space Storage's stock is perceived as being overvalued in the market, particularly in relation to 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: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Transaction Codes Worth Your Attention

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 Extra Space Storage's Insider Trades.

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