On June 6, 2023, President and CEO William Lenehan purchased 7,600 shares of Four Corners Property Trust Inc (FCPT, Financial), a real estate investment trust (REIT) that primarily invests in restaurant properties. This insider buying activity could be a signal of confidence in the company's future prospects and may warrant further analysis of the stock.
William Lenehan has been the President and CEO of Four Corners Property Trust Inc since its inception in 2015. He has extensive experience in the real estate industry, having previously served as a director at various real estate companies, including Rouse Properties Inc and Gramercy Property Trust.
Four Corners Property Trust Inc is a REIT that focuses on the acquisition, ownership, and leasing of high-quality, net-leased restaurant properties. The company's portfolio consists of over 700 properties located across the United States, with tenants including well-known restaurant brands such as Olive Garden, LongHorn Steakhouse, and Buffalo Wild Wings.
Insider Buying Analysis
Over the past year, William Lenehan has purchased a total of 17,225 shares and has not sold any shares. This recent purchase of 7,600 shares adds to his existing holdings in the company, potentially indicating a strong belief in its future performance.
The insider transaction history for Four Corners Property Trust Inc shows a total of 2 insider buys over the past year, with no insider sells during the same period. This trend suggests that insiders may have a positive outlook on the company's prospects.
Valuation
Shares of Four Corners Property Trust Inc were trading at $26.06 apiece on the day of William Lenehan's recent buy, giving the stock a market cap of $2.274 billion.
The price-earnings ratio is 21.96, which is higher than the industry median of 14.66 and lower than the company's historical median price-earnings ratio.
With a price of $26.06 and a GuruFocus Value of $29.61, Four Corners Property Trust Inc has a price-to-GF-Value ratio of 0.88. This means the stock is modestly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider buying activity by William Lenehan, coupled with the stock's modest undervaluation based on its GF Value, may indicate that Four Corners Property Trust Inc is worth further consideration for investors. The positive insider transaction trend and the company's strong portfolio of net-leased restaurant properties could signal potential growth and value in the stock.
