27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Disclosed on December 21, Larry Chapman, Board Member at Realty Income (NYSE:O), executed a substantial insider sell as per the latest SEC filing.
What Happened: Chapman's recent move involves selling 3,500 shares of Realty Income. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $199,435.
The latest market snapshot at Thursday morning reveals Realty Income shares up by 0.71%, trading at $57.1.
Discovering Realty Income: A Closer Look
Realty Income owns roughly 13,100 properties, most of which are freestanding, single-tenant, triple-net-leased retail properties. Its properties are located in 49 states and Puerto Rico and are leased to 250 tenants from 47 industries. Recent acquisitions have added industrial, gaming, office, manufacturing, and distribution properties, which make up roughly 17% of revenue.
Realty Income: Delving into Financials
Revenue Growth: Realty Income displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 24.11%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Real Estate sector, the company excelled with a growth rate higher than the average among peers.
Profitability Metrics: Unlocking Value
Gross Margin: Achieving a high gross margin of 93.17%, the company performs well in terms of cost management and profitability within its sector.
Earnings per Share (EPS): Realty Income's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.33.
Debt Management: Realty Income's debt-to-equity ratio is below the industry average. With a ratio of 0.66, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Evaluating Valuation:
Price to Earnings (P/E) Ratio: The current P/E ratio of 42.95 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 9.76 suggests overvaluation in the eyes of investors, considering sales performance.
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 18.03, Realty Income demonstrates exemplary market valuation, surpassing industry averages.
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
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Navigating the Impact of Insider Transactions on Investments
Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Transaction Codes Worth Your Attention
In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Realty Income's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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