SKT

Tanger Inc. ($SKT) President Bets $100,000 on Stock After Decline, Bucking Executive Selling Trend

05/05/2025 20:22

Tanger Inc.'s President Stephen Yalof has made a significant insider purchase of approximately $100,000 worth of company shares on May 5, 2025. This notable move comes at a time when the stock has experienced a substantial decline from its early 2025 highs, and stands in stark contrast to the selling pattern exhibited by other high-ranking executives in recent months. $SKT is a mid-sized Real Estate Investment Trust (REIT) that operates 38 outlet shopping centers across the United States and Canada, encompassing over 16 million square feet of retail space. Founded in 1981, the company has established itself as a leader in the outlet shopping center sector and has been publicly traded on the New York Stock Exchange since 1993. What makes Yalof's purchase particularly interesting is the preceding stream of insider sales by company executives. EVP Leslie Swanson Gallardo sold 12,500 shares (worth approximately $404,750) at an average price of $32.38 on March 11, 2025, her second major divestment following the sale of 17,900 shares (approximately $550,246) at $30.74 in September 2024. Additionally, board member Susan E. Skerritt sold 9,844 shares (around $342,473) at $34.79 on February 28, 2025. These insider sales were concentrated during a period when $SKT's share price had climbed from around $26 in June 2024 to over $36 by late 2024. In contrast, Yalof's purchase came after the stock had fallen below $30 in recent weeks. $SKT's stock has experienced increased volatility since early 2025. Particularly, around March 10 when the U.S. market suffered a significant downturn, losing approximately $4 trillion in value due to uncertainties surrounding President Trump's tariff policies, $SKT similarly declined from $35 to around $32. The stock faced further pressure in early April when the U.S. dollar recorded its largest daily decline since November 2022, causing $SKT to fall from $34 to approximately $30. Financially, Tanger presents a mixed picture. The company's recent quarterly revenue increased by 9.40% year-over-year, but earnings declined by 14.30% during the same period. Total revenue (TTM) stands at $549.23 million with net income (TTM) at $94.49 million. Also noteworthy is the high debt-to-equity ratio of 249.83% and total debt (MRQ) of $1.65 billion, suggesting potential vulnerability to changes in the interest rate environment. On a positive note, Tanger recently increased its annual dividend by 6.4%, from $1.10 to $1.17 per share, demonstrating continued focus on returning value to shareholders. Yalof's recent purchase, occurring at a time of share price weakness, may indicate his positive assessment of the company's value at current price levels. Yalof joined Tanger in January 2020 as COO before moving through the CEO position to his current role as President. With over 30 years of experience in retail real estate, his buying decision could be interpreted as a significant signal to the market. However, investors should remain cautious about $SKT's high debt ratio and declining profitability trend. The high leverage is particularly concerning in an environment where Federal Reserve interest rate cuts have been delayed. Additionally, inflationary pressures and changing consumer spending patterns are factors that could impact outlet shopping center operations. In conclusion, while President Yalof's recent purchase may be a positive signal indicating his conviction that $SKT shares are undervalued, the high debt ratio and declining earnings trend are factors investors should carefully consider. It will be worth watching how Tanger manages these challenges and adapts to changes in the retail real estate market in the coming months.

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