Larry Chapman Takes Money Off The Table, Sells $271K In Realty Income Stock

Revealing a significant insider sell on April 11, Larry Chapman, Board Member at Realty Income O, as per the latest SEC filing.

What Happened: Chapman's recent move involves selling 5,000 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 $271,150.

The latest market snapshot at Friday morning reveals Realty Income shares up by 0.05%, trading at $52.27.

All You Need to Know About Realty Income

Realty Income owns roughly 13,400 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's Economic Impact: An Analysis

Revenue Growth: Realty Income's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 21.11%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Real Estate sector.

Navigating Financial Profits:

• Gross Margin: Achieving a high gross margin of 92.39%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Realty Income's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.3.

Debt Management: Realty Income's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.67.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 41.46 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 8.88 is above industry norms, reflecting an elevated valuation for Realty Income's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 18.52, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Exploring the Significance of Insider Trading

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

A Closer Look at Important Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as 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.