Insider Decision: SAMUEL LANDY Offloads $977K Worth Of UMH Properties Stock

On November 13, a recent SEC filing unveiled that SAMUEL LANDY, President and CEO at UMH Properties UMH made an insider sell.

What Happened: LANDY opted to sell 50,000 shares of UMH Properties, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction's total worth stands at $977,500.

As of Thursday morning, UMH Properties shares are down by 0.0%, currently priced at $19.75.

Get to Know UMH Properties Better

UMH Properties Inc together with its subsidiaries is a real estate investment trust. It is engaged in the business of ownership and operation of manufactured home communities - leasing manufactured homesites to residents . The Company also leases manufactured homes to residents and, through its wholly-owned taxable REIT subsidiary, UMH Sales and Finance, Inc. sells and finances the sale of manufactured homes to residents and prospective residents of its communities and for placement on customers' privately-owned land. The company also owns the land, utility connections, streets, lighting, driveways, common area amenities, and other capital improvements. It earns income from lease agreements for their sites and homes, where the company is the lessor.

Key Indicators: UMH Properties's Financial Health

Revenue Growth: UMH Properties's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 8.26%. 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.

Key Insights into Profitability Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 53.92%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): UMH Properties's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.11.

Debt Management: UMH Properties's debt-to-equity ratio is below the industry average. With a ratio of 1.12, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 151.92, UMH Properties's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: The current P/S ratio of 5.94 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): UMH Properties's EV/EBITDA ratio stands at 20.55, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Why Insider Activity Matters in Finance

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 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 UMH Properties's Insider Trades.

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