Director Of Sun Communities Makes $258K Buy

Meghan G Baivier, Director at Sun Communities SUI, disclosed an insider purchase on January 22, based on a new SEC filing.

What Happened: Baivier demonstrated confidence in Sun Communities by purchasing 2,000 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the transaction is $258,019.

Sun Communities's shares are actively trading at $128.8, experiencing a down of 0.0% during Tuesday's morning session.

Discovering Sun Communities: A Closer Look

Sun Communities is a residential REIT that focuses on owning manufactured housing, residential vehicle communities, and marinas. The company currently owns a portfolio of 670 properties, which includes 353 manufactured housing communities, 182 residential vehicle communities, and 135 marina properties. Sun targets owning properties that are desirable as second homes or vacation properties with nearly 50% of the portfolio located in either Florida or Michigan near major bodies of water.

Sun Communities's Financial Performance

Revenue Growth: Sun Communities's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 5.06%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Real Estate sector.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 50.0%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Sun Communities's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.31.

Debt Management: Sun Communities's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.98.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: Sun Communities's current Price to Earnings (P/E) ratio of 71.16 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 5.12 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): Sun Communities's EV/EBITDA ratio at 19.62 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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Uncovering the Importance of Insider Activity

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Transaction Codes To Focus On

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 Sun Communities's Insider Trades.

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