What Does Insider Buying Tell About Agree Realty?

Time after time, insider buying is one event that investors should pay attention to. Insiders may sell shares for a number of reasons, such as to fund their kids college studies, but buy for only reason - they think the share price is going to go higher.

Yesterday after the close, Agree Realty Corporation (NYSE: ADC) CEO, Richard Agree, disclosed the purchase of 10,000 shares of the company's common stock at the average price of $20.78. This brings his total ownership in the Agree Realty to approximately 319K shares.

Agree Realty is a real estate investment trust, which used to have a significant exposure to Borders bookstores. However, It has remarkably diversified its real-estate portfolio in the past months. For example, just a week ago the company announced that it acquired a Lowe's retail property in Oregon and two weeks ago it acquired a Florida property that will be leased to JP Morgan Chase. Additionally, Agree Realty reported today that it sold a former Borders property in Omaha, Nebraska for $2.75M.

Benzinga spoke with the company's president, Joey Agree, earlier this month about the company's diversification strategy and he noted that “In terms of sector, we are focused on developing and acquiring industry leading retailers that are both web and recession resistant. Core consumer products, both hard and soft, that lend themselves to the traditional brick and mortar shopping experience.”

“We are currently working on acquisitions and developments across the continental United States. We don't see geography as a physical constraint, but rather an opportunity for us to further diversify our portfolio,” Joey Agree continued.

Agree Realty is currently trading at the lows of the year around the $21 level. This gives the company a forward P/E ratio of 10.2 and a strong dividend yield of 7.7%