On September 6, 2023, Frank Kavanaugh, CEO & President, and 10% Owner of Medalist Diversified REIT Inc (MDRR, Financial), made a significant insider purchase of 2,817 shares of the company's stock. This move is noteworthy and deserves a closer look.
Who is Frank Kavanaugh?
Frank Kavanaugh is the CEO & President, and a 10% Owner of Medalist Diversified REIT Inc. He has a long-standing history with the company and has been instrumental in its growth and development. Kavanaugh's insider status and his recent purchase indicate a strong belief in the company's future prospects.
About Medalist Diversified REIT Inc
Medalist Diversified REIT Inc is a real estate investment trust that specializes in acquiring, owning, and managing value-add commercial real estate in the Mid-Atlantic and Southeast regions. The company's strategy is to focus on value-add and opportunistic commercial real estate which is expected to provide an attractive balance of risk and returns.
Insider Buying Analysis
Over the past year, Frank Kavanaugh has purchased a total of 35,193 shares and has not sold any shares. This recent purchase of 2,817 shares further strengthens his position in the company.
The insider transaction history for Medalist Diversified REIT Inc shows a total of 15 insider buys over the past year, with no insider sells recorded over the same timeframe. This trend suggests a positive sentiment among the insiders about the company's future.
The relationship between insider buying/selling and stock price is often considered a strong indicator of a company's future performance. The consistent insider buying activity, coupled with the absence of insider selling, could be interpreted as a positive sign for the company's stock price.
Valuation
On the day of the insider's recent buy, shares of Medalist Diversified REIT Inc were trading at $22.98 each, giving the company a market cap of $11.649 million.
With a price of $22.98 and a GuruFocus Value of $4.93, Medalist Diversified REIT Inc has a price-to-GF-Value ratio of 4.66. This suggests that the stock is fairly valued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent purchase, along with the consistent insider buying trend and the fair valuation of the stock, could be seen as positive indicators for Medalist Diversified REIT Inc's future stock price performance.
