Marguerite Nader, President and CEO at Equity Lifestyle Props ELS, reported an insider sell on September 17, according to a new SEC filing.

What Happened: Nader’s recent move involves selling 33,000 shares of Equity Lifestyle Props. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value is $2,492,160.

Equity Lifestyle Props‘s shares are actively trading at $74.23, experiencing a down of 0.3% during Wednesday’s morning session.

Delving into Equity Lifestyle Props’s Background

Equity Lifestyle Properties is a residential REIT that focuses on owning manufactured housing, residential vehicle communities, and marinas. The company currently has a portfolio of 451 properties across the U.S. with a higher concentration in the Sunbelt region with 38% of the company’s properties located in Florida, 12% in Arizona, and 8% in California. Equity Lifestyle targets owning properties in attractive retirement destinations with over 70% of the company’s properties either being age-restricted or having an average resident age over 55.

Equity Lifestyle Props: Financial Performance Dissected

Revenue Growth: Equity Lifestyle Props’s revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 2.65%. This indicates a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Real Estate sector.

Key Profitability Indicators:

• Gross Margin: The company shows a low gross margin of 48.45%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Equity Lifestyle Props’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 0.42.

Debt Management: Equity Lifestyle Props’s debt-to-equity ratio stands notably higher than the industry average, reaching 2.41. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Valuation Overview:

• Price to Earnings (P/E) Ratio: Equity Lifestyle Props’s P/E ratio of 38.78 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 10.17, Equity Lifestyle Props’s stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 24.51 reflects market recognition of Equity Lifestyle Props’s value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: The company’s market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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The Impact of Insider Transactions on Investments

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Unlocking the Meaning of 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 Equity Lifestyle Props’s Insider Trades.

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