John Rakolta, a director at Agree Realty Corp (ADC, Financial), has increased his stake in the company by purchasing 20,102 shares on February 21, 2024, according to a recent SEC Filing. This transaction has expanded Rakolta's holdings in the real estate investment trust that specializes in acquiring and developing properties net leased to industry-leading retail tenants.
Over the past year, the insider has executed a series of transactions, resulting in a net purchase of 151,862 shares and no recorded sales. This pattern of consistent buying activity aligns with the broader insider trend at Agree Realty Corp, which has seen a total of 28 insider buys and no insider sells over the same period.
On the date of the insider's latest acquisition, shares of Agree Realty Corp were trading at $56.75, giving the company a market capitalization of $5.740 billion. The stock's price-earnings ratio stood at 33.40, surpassing both the industry median of 17.06 and the historical median for the company.
Despite the higher price-earnings ratio, the stock appears to be trading below its intrinsic value according to the GuruFocus Value, which is set at $65.05. This results in a price-to-GF-Value ratio of 0.87, indicating that Agree Realty Corp is modestly undervalued. The GF Value is derived from historical trading multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates provided by Morningstar analysts.
Agree Realty Corp's business model focuses on acquiring and developing properties that are leased to leading retailers under long-term net leases. The company's portfolio consists of assets across various sectors, including retail, automotive, and consumer services, which provides a diversified income stream and reduces the risk associated with tenant defaults.
The insider's recent purchase aligns with the overall positive insider buying trend at Agree Realty Corp and may signal confidence in the company's future performance and valuation.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
