MRP

Millrose Properties ($MRP) Directors Snap Up $780K in Shares Near 52-Week High, Showing Strong Confidence After 50% Funding Forecast Boost

05/23/2025 15:39

Directors and executives of mid-cap real estate investment firm Millrose Properties ($MRP) are drawing investor attention with significant stock purchases since mid-May. This insider buying, coinciding with recently upgraded performance forecasts, carries particular significance as it occurs with the stock trading near its 52-week high. In just three days from May 19 to May 21, three directors and executives of Millrose Properties purchased a total of 27,500 shares worth approximately $780,000. Director Matthew Gorson acquired 7,500 shares at an average price of $28.24 on May 19, while Director Patrick Bartels Jr. bought a total of 17,500 shares over two consecutive days (May 19 and 20). Additionally, CTO Adil Pasha purchased 2,500 shares at $28.34 on May 21. This insider buying is particularly notable as it follows the company's May 14 announcement significantly raising its 2025 deal funding forecast from $1 billion to $1.5 billion. The company also upgraded its year-end EPS run-rate expectation to 69-71 cents, citing heightened demand. Following this announcement, the stock rose 5% to reach $28. Millrose Properties operates as a REIT (Real Estate Investment Trust) with a unique business model in the residential real estate sector. The company's core business, the 'Homesite Option Purchase Platform' (HOPP'R), represents an evolution of traditional residential land banking, designed to accelerate capital-efficient growth for homebuilders by controlling strategic land positions. This innovative platform provides retail investors access to residential real estate-backed income-generating investments, a market segment typically accessible only to institutional investors. This positions Millrose as a differentiated player in the residential REIT space, offering both growth potential and income opportunities. The recent insider purchases are not the first this year. Several executives and directors made consecutive purchases in February and March as well. Notably, Officer Darren Richman executed massive purchases totaling 265,000 shares worth approximately $5.96 million over just two days (February 13-14). According to company filings, these shares are held in a trust for the benefit of Richman's children and spouse. In February, COO Robert Nitkin also bought 3,225 shares for about $76,000, while in early March, officers Garett Rosenblum and Rachel Presa, along with Director Carlos Migoya, made consecutive stock purchases. This consistent pattern of insider buying demonstrates management's strong confidence in the company's growth prospects. Financially, Millrose Properties presents a mixed picture. The company reported $82.7 million in revenue over the trailing twelve months but posted a net loss of $124.47 million with an EPS of -$0.90. However, the company maintains a strong liquidity position with $89.52 million in cash and a very low debt-to-equity ratio of 6.18%, providing significant financial flexibility. From a market valuation perspective, Millrose's stock has risen 30.91% year-to-date and currently trades around $28, approaching its 52-week high of $28.99. With a current market capitalization of approximately $4.67 billion, its price-to-sales (P/S) ratio stands at an extremely high 56.27, suggesting investors are betting on future growth potential well beyond current revenue levels. In the broader U.S. market, stocks rebounded in early May due to easing U.S.-China trade tensions, but uncertainty has recently increased as President Trump renewed tariff threats on European Union goods. Despite this market volatility, Millrose continues to demonstrate solid performance. The recent large insider purchases and the company's upgraded performance outlook suggest that Millrose's unique business model is expanding successfully despite an unstable macroeconomic environment. The fact that insiders are buying shares near the 52-week high sends a strong signal that they believe the stock remains undervalued. Investors should watch whether Millrose Properties' innovative real estate platform and the strong conviction of insiders can support the company's future growth. Despite current losses, the low debt and unique business model are factors that enhance the possibility of long-term success.

You can receive notifications when news is published.