MRP

Millrose Properties($MRP) Director Buys $211K Near 52-Week High, Following Pattern of Insider Conviction Amid Bullish Outlook

05/20/2025 19:08

Millrose Properties director Matthew Gorson has purchased $211,815 worth of stock as shares trade near their 52-week high, regulatory filings show. Gorson acquired 7,500 shares at $28.24 per share on May 19, the latest in a pattern of consistent insider buying at the company this year. This purchase comes just five days after MRP raised its 2025 deal funding forecast from $1 billion to $1.5 billion and increased its year-end EPS run-rate expectation to 69-71 cents. Following this positive outlook announcement, MRP shares rose 5% and closed at $28.70 on May 19, marking over 33% returns year-to-date. Millrose Properties has witnessed a notable pattern of insider purchases since early 2025. Most prominently, officer Darren Richman acquired a substantial 265,000 shares worth approximately $5.96 million in just two days during mid-February, while COO Robert Nitkin and director Carlos Migoya also made significant purchases during this period. About a month after this cluster of buying, MRP shares surged more than 20%, climbing from the $21 range to over $26. Director Carlos Migoya demonstrated particular conviction, purchasing shares on three separate occasions from February through March, while other officers including Garett Rosenblum and Rachel Presa joined the buying activity in March. This consistent insider accumulation signals strong confidence from management in the company's future. Investors should note that these insider purchases are occurring despite MRP's current profitability challenges. Financial data shows MRP reported $82.7 million in revenue with a net loss of $124.47 million over the trailing twelve months, representing a loss per share of $0.90. Nevertheless, the company maintains financial stability with $89.52 million in cash and a very low debt-to-equity ratio of just 6.18%. Millrose Properties operates an innovative residential real estate investment platform branded as the Homesite Option Purchase Platform ("HOPP'R"), providing homebuilders with a capital-efficient method to manage land positions. This business model helps homebuilders accelerate growth while efficiently using capital, while offering investors access to income-generating residential real estate investments typically reserved for institutional players. MRP's share price has maintained its strength despite market uncertainty stemming from growing government debt and Moody's downgrade of the U.S. credit rating from Aaa to Aa1. While U.S. markets showed weakness in mid-May, MRP continued its upward momentum, reflecting strong investor confidence in the company's business model and growth prospects. Market analysts note that while MRP currently trades at over 57 times sales, reflecting high growth expectations, it trades at just 0.81 times book value, suggesting potential undervaluation relative to its net asset value. This may indicate that the potential value of the company's real estate assets isn't fully reflected in the current share price. According to LSEG data, the two brokerages covering MRP both rate it a 'buy' or higher, with a median price target of $29, suggesting modest upside from current levels. Combined with the consistent insider buying, this indicates that the company's long-term growth story remains compelling despite near-term profitability issues. Potential investors should consider that while MRP's innovative business model and low leverage provide a solid foundation for future growth, current negative earnings and high valuation multiples present near-term risk factors. The strong insider buying signal is positive, but it remains important to watch whether the company can actually deliver on its projected growth. The recent insider purchases and positive outlook revisions suggest MRP is moving in the right direction, but investors would be wise to approach cautiously until evidence of improving results materializes.

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