Plymouth Industrial REIT Board Member Trades $89K In Company Stock

On March 25, a substantial insider purchase was made by John W. Guinee III, Board Member at Plymouth Industrial REIT PLYM, as per the latest SEC filing.

What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, III purchased 5,250 shares of Plymouth Industrial REIT, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $89,250.

As of Wednesday morning, Plymouth Industrial REIT shares are up by 2.75%, currently priced at $17.2.

About Plymouth Industrial REIT

Plymouth Industrial REIT Inc is a full-service, vertically integrated, self-administered, and self-managed Maryland corporation. It is focused on the acquisition, ownership, and management of single and multi-tenant Class B industrial properties, including distribution centers, warehouses, and light industrial properties, located in secondary and primary markets across the United States. The company has one reportable segment, which is Industrial properties. The majority of its property portfolio is spread across Florida, Ohio, Indiana, Tennessee, Illinois and Georgia, among others. It receives income from the rental revenue through its properties.

Plymouth Industrial REIT: Delving into Financials

Revenue Growth: Plymouth Industrial REIT's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -6.33%. This indicates a decrease 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.

Interpreting Earnings Metrics:

• Gross Margin: With a low gross margin of 70.29%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Plymouth Industrial REIT's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 3.25.

Debt Management: Plymouth Industrial REIT's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.11, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 5.47 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 3.8 is lower than the industry average, implying a discounted valuation for Plymouth Industrial REIT's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 5.2, Plymouth Industrial REIT presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Navigating the Impact of Insider Transactions on Investments

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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.

Breaking Down the Significance of Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Plymouth Industrial REIT's Insider Trades.

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