BRT Apartments Insider Trades Send A Signal

Ryan Baltimore, Chief Operating Officer at BRT Apartments BRT, disclosed an insider sell on May 15, according to a recent SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Baltimore sold 6,250 shares of BRT Apartments. The total transaction value is $109,983.

As of Thursday morning, BRT Apartments shares are down by 0.0%, currently priced at $17.94.

About BRT Apartments

BRT Apartments Corp is a real estate investment trust company. The company is primarily focused on the ownership, operation, and development of multi-family properties. BRT also owns and operates other real estate assets. All of the Company's assets are comprised of multi-family real estate assets generally leased to tenants on a one-year basis.

A Deep Dive into BRT Apartments's Financials

Revenue Growth: BRT Apartments's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 1.57%. This signifies 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.

Interpreting Earnings Metrics:

• Gross Margin: The company shows a low gross margin of 54.59%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): BRT Apartments's EPS is below the industry average. The company faced challenges with a current EPS of -0.17. This suggests a potential decline in earnings.

Debt Management: With a high debt-to-equity ratio of 2.08, BRT Apartments faces challenges in effectively managing its debt levels, indicating potential financial strain.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: BRT Apartments's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 89.7.

• Price to Sales (P/S) Ratio: The P/S ratio of 3.41 is lower than the industry average, implying a discounted valuation for BRT Apartments's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 14.27 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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The Impact of Insider Transactions on Investments

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

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.

The Insider's Guide to Important Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of BRT Apartments's Insider Trades.

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