Insider Move: Darrell W Crate Invests $109K In Easterly Government Props Stock

A significant insider buy by Darrell W Crate, President & CEO at Easterly Government Props DEA, was executed on December 23, and reported in the recent SEC filing.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Crate increased their investment in Easterly Government Props by purchasing 10,000 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $109,100.

The latest update on Tuesday morning shows Easterly Government Props shares up by 0.54%, trading at $11.1.

Get to Know Easterly Government Props Better

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.

A Deep Dive into Easterly Government Props's Financials

Revenue Growth: Over the 3 months period, Easterly Government Props showcased positive performance, achieving a revenue growth rate of 3.84% as of 30 September, 2024. This reflects 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.

Holistic Profitability Examination:

  • Gross Margin: Achieving a high gross margin of 66.96%, the company performs well in terms of cost management and profitability within its sector.

  • Earnings per Share (EPS): Easterly Government Props's EPS reflects a decline, falling below the industry average with a current EPS of 0.05.

Debt Management: Easterly Government Props's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.12.

Valuation Analysis:

  • Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 64.94, Easterly Government Props's stock is perceived as being overvalued in the market.

  • Price to Sales (P/S) Ratio: The Price to Sales ratio is 3.8, 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): With an EV/EBITDA ratio of 15.06, the company's market valuation exceeds industry averages.

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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Illuminating the Importance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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.

Deciphering Transaction Codes in Insider Filings

When analyzing transactions, investors tend to focus on those in the open market, 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.

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

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