Insider Confidence On Display: MARK ALEXANDER Acquires $195K In W.P. Carey Stock

On August 12, MARK ALEXANDER, Director at W.P. Carey WPC executed a significant insider buy, as disclosed in the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that ALEXANDER purchased 3,500 shares of W.P. Carey. The total transaction amounted to $195,530.

As of Tuesday morning, W.P. Carey shares are up by 1.9%, currently priced at $56.87.

Discovering W.P. Carey: A Closer Look

W.P. Carey Inc is a real estate investment trust principally involved in the ownership of properties located in the U.S., Western Europe, and Northern Europe. W.P. Carey organizes its operations into Real Estate and Investment Management segments. The vast majority of the company's income is derived from its Real Estate division in the form of lease revenue from long-term agreements with companies. W.P. Carey's real estate portfolio is primarily comprised of single-tenant office, industrial, warehouse, and retail facilities located around the world. most of the company's revenue comes from properties in the USA. The company's Investment Management unit generates revenue from providing real estate advisory and portfolio management services to other REITs.

Breaking Down W.P. Carey's Financial Performance

Decline in Revenue: Over the 3 months period, W.P. Carey faced challenges, resulting in a decline of approximately -13.9% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Real Estate sector.

Exploring Profitability:

• Gross Margin: The company sets a benchmark with a high gross margin of 88.07%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): W.P. Carey's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.65.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.94.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 21.47, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 7.45 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 13.16 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Relevance of Insider Transactions

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

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.

Understanding Crucial 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 W.P. Carey's Insider Trades.

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