Whitestone REIT Director Trades Company's Stock

A significant insider buy by David F Taylor, Director at Whitestone REIT WSR, was executed on December 21, and reported in the recent SEC filing.

What Happened: In a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, it was disclosed that Taylor bought 4,824 shares of Whitestone REIT, amounting to a total of $60,010.

During Friday's morning session, Whitestone REIT shares down by 0.41%, currently priced at $12.21.

Get to Know Whitestone REIT Better

Whitestone REIT is a real estate investment trust (REIT) engaged in owning and operating commercial properties in culturally diverse markets in metropolitan areas. Its property portfolio includes retail and office/flex properties. The company's properties are located in business-friendly locations in and around Austin, Chicago, Dallas-Fort Worth, Houston, Phoenix, and San Antonio. The organization derives revenue in the form of rental revenues.

Whitestone REIT: A Financial Overview

Revenue Growth: Whitestone REIT's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 4.96%. This indicates a substantial increase 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.

Key Insights into Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 69.21%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Whitestone REIT's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.05.

Debt Management: Whitestone REIT's debt-to-equity ratio is below the industry average. With a ratio of 1.48, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Market Valuation:

• Price to Earnings (P/E) Ratio: Whitestone REIT's P/E ratio of 16.35 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 4.23, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Whitestone REIT's EV/EBITDA ratio, lower than industry averages at 11.92, indicates attractively priced shares.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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The Importance of Insider Transactions

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Exploring Key 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 Whitestone REIT's Insider Trades.

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