On May 24, 2023, Joey Agree, President and CEO of Agree Realty Corp (NYSE:ADC), purchased 5,000 shares of the company's stock. This move is a strong signal of confidence in the company's future prospects and is worth examining in more detail.
Who is Joey Agree?
Joey Agree has been the President and CEO of Agree Realty Corp since 2013. Under his leadership, the company has experienced significant growth and expansion. Agree Realty Corp is a real estate investment trust (REIT) that focuses on the acquisition, development, and management of retail properties, primarily in the United States. The company's portfolio consists of high-quality retail properties, including single-tenant net lease assets and shopping centers.
Joey Agree's Insider Trading Activity
Over the past year, Joey Agree has been an active buyer of Agree Realty Corp shares. In total, he has purchased 15,000 shares and has not sold any shares. This recent purchase of 5,000 shares further demonstrates his confidence in the company's prospects and performance.
Insider Trends at Agree Realty Corp
The insider transaction history for Agree Realty Corp reveals a positive trend, with 8 insider buys in total over the past year and no insider sells. This pattern suggests that insiders are optimistic about the company's future and believe that the stock is undervalued.
Valuation of Agree Realty Corp
On the day of Joey Agree's recent purchase, shares of Agree Realty Corp were trading at $64.91 apiece, giving the stock a market capitalization of $6,085.858 million. The price-earnings ratio is 36.48, which is higher than the industry median of 14.36 and higher than the company's historical median price-earnings ratio.
With a price of $64.91 and a GuruFocus Value of $76.57, Agree Realty Corp has a price-to-GF-Value ratio of 0.85. This indicates that the stock is modestly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus, 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.
Conclusion
The recent insider buying activity by Joey Agree, along with the positive insider trends at Agree Realty Corp, suggests that the company's management is confident in its future prospects. The stock's modest undervaluation, as indicated by its price-to-GF-Value ratio, presents an attractive opportunity for investors seeking exposure to the retail real estate sector. As always, investors should conduct their own research and consider their risk tolerance before making any investment decisions.
