Stag Industrial Chief Accounting Officer Trades $497K In Company Stock

It was reported on December 22, that Jaclyn Paul, Chief Accounting Officer at Stag Industrial STAG executed a significant insider sell, according to an SEC filing.

What Happened: Paul's recent Form 4 filing with the U.S. Securities and Exchange Commission on Friday unveiled the sale of 12,900 shares of Stag Industrial. The total transaction value is $497,553.

The latest update on Friday morning shows Stag Industrial shares down by 0.03%, trading at $38.73.

All You Need to Know About Stag Industrial

Stag Industrial Inc is a real estate investment trust that is involved in the acquisition and operation of both single- and multi-tenant properties, although the majority of the portfolio is single-tenant industrial properties throughout the United States. The vast majority of the company's real estate portfolio is comprised of warehouse and distribution buildings. Stag Industrial derives nearly all of its income in the form of rental income from its portfolio of warehouse and distribution properties. The company generates most of its rental revenue from its facilities located in Midwestern and Eastern U.S. cities. Stag Industrial's largest customers include air freight and logistics, automotive, and industrial equipment companies in terms of overall revenue.

Stag Industrial's Economic Impact: An Analysis

Revenue Growth: Stag Industrial displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 7.8%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Real Estate sector.

Holistic Profitability Examination:

• Gross Margin: With a high gross margin of 80.8%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Stag Industrial's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.28.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.76, caution is advised due to increased financial risk.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: Stag Industrial's P/E ratio of 38.36 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 10.03, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Stag Industrial's EV/EBITDA ratio at 17.4 suggests potential undervaluation, falling below industry averages.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Delving Into the Significance of Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

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.

A Deep Dive into Insider Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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 Stag Industrial's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.