Easterly Government Props Chairman Makes $105K Stock Purchase

It was revealed in a recent SEC filing that Darrell W Crate, Chairman at Easterly Government Props DEA made a noteworthy insider purchase on December 14,.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Crate purchased 8,000 shares of Easterly Government Props. The total transaction amounted to $105,120.

In the Thursday's morning session, Easterly Government Props's shares are currently trading at $13.77, experiencing a up of 3.22%.

About Easterly Government Props

Easterly Government Properties Inc is a real estate investment trust. It is engaged in the acquisition, development, and management of Class A commercial properties that are leased to U.S. government agencies. The company generates all its revenue by leasing its properties to such agencies.

Understanding the Numbers: Easterly Government Props's Finances

Negative Revenue Trend: Examining Easterly Government Props's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -4.03% in revenue growth, reflecting a decrease in 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.

Key Insights into Profitability Metrics:

• Gross Margin: With a low gross margin of 63.12%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Easterly Government Props's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.06.

Debt Management: Easterly Government Props's debt-to-equity ratio is below the industry average at 0.96, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 40.42 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 4.28 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Easterly Government Props's EV/EBITDA ratio, surpassing industry averages at 14.03, positions it with an above-average valuation in the market.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Why Pay Attention to Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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.

Cracking 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 Easterly Government Props's Insider Trades.

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