It was revealed in a recent SEC filing that STEPHEN STERRETT, Board Member at Equity Residential (NYSE:EQR) made a noteworthy insider purchase on August 18,.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled that STERRETT made a notable purchase of 1,852 shares of Equity Residential, valuing at $99,970.
During Tuesday's morning session, Equity Residential shares up by 1.71%, currently priced at $64.32.
Unveiling the Story Behind Equity Residential
Equity Residential owns a portfolio of 312 apartment communities with over 84,000 units and is developing two additional properties with 655 units. The company focuses on owning large, high-quality properties in the urban and suburban submarkets of Southern California, San Francisco, Washington, D.C., New York, Seattle, and Boston.
A Deep Dive into Equity Residential's Financials
Revenue Growth: Equity Residential's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 4.72%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Real Estate sector.
Insights into Profitability:
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Gross Margin: Achieving a high gross margin of 63.14%, the company performs well in terms of cost management and profitability within its sector.
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Earnings per Share (EPS): Equity Residential's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.51.
Debt Management: Equity Residential's debt-to-equity ratio is below the industry average at 0.79, reflecting a lower dependency on debt financing and a more conservative financial approach.
Analyzing Market Valuation:
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Price to Earnings (P/E) Ratio: Equity Residential's P/E ratio of 23.8 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: The current P/S ratio of 8.12 is above industry norms, reflecting an elevated valuation for Equity Residential's stock and potential overvaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Equity Residential's EV/EBITDA ratio at 13.79 suggests potential undervaluation, falling below industry averages.
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
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Unmasking the Significance of Insider Transactions
Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
A Deep Dive into Insider Transaction Codes
When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes 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 Equity Residential's Insider Trades.
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