BRT

BRT Apartments Corp($BRT) Executives Deploy $690K in Concentrated Buying Amid 20% Stock Decline

05/23/2025 20:51

Key executives and major shareholders of BRT Apartments Corp ($BRT), a U.S. multi-family housing REIT, have sparked market interest with significant insider purchases during mid-May's stock weakness. The synchronized buying activity by the company's president and senior executives is particularly noteworthy. $BRT's stock price, which reached around $19.50 in late November 2024, has declined to the $15-16 range by May 2025. The shares experienced a sharp decline from late March through early April and were trading at $15.32 as of May 22, approximately 24% below their 52-week high of $20.22. Against this backdrop, BRT's executives and major shareholders engaged in concentrated buying from May 12 through May 22. According to SEC filings, President Jeffrey Gould, SVP Matthew Gould, and major shareholder GOULD INVESTORS L P executed their first wave of purchases from May 12-14, followed by a second wave from May 21-22. Notably, these insiders largely purchased the same number of shares on the same days. This pattern suggests that single transactions were reported multiple times due to the ownership structure between the Gould family and their controlled entities. Analyzing the effective transactions reveals purchases of approximately 25,000 shares (worth about $380,000) on May 12-13, 5,000 shares (about $75,000) on May 14, and approximately 15,000 shares (about $230,000) on May 21-22. BRT Apartments Corp is a Maryland-based internally managed REIT that primarily invests in garden-style multi-family residential properties located in the southeastern United States and Texas. As of year-end 2024, the company owned 29 multi-family properties across 11 states, comprising approximately 7,947 units. This insider buying pattern is particularly significant as it represents the first major purchasing activity following executive sales in November 2024 and March 2025. In November 2024, executive GOULD MITCHELL sold approximately 50,000 shares across multiple transactions, while in March 2025, executive ZWEIER GEORGE divested about 5,700 shares. Examining the company's financial situation, BRT reported better-than-expected results for Q1 2025 on May 9. The company posted a loss of 12 cents per share, better than analysts' anticipated 16-cent loss, while revenue increased 3% year-over-year to $24.11 million, surpassing the expected $23.85 million. However, BRT faces some long-term challenges. The company recorded a net loss of $9.79 million for fiscal year 2024, contrasting with a net profit of $13.87 million in 2023. Additionally, its debt-to-equity ratio is relatively high at approximately 244%, though this is typical for the REIT industry. On the positive side, BRT maintains an attractive dividend yield of about 6.4%, making it an appealing option for income-focused investors. The company also maintains a healthy operating margin of 13.7%. Analysts generally maintain an optimistic outlook on BRT. The average price target stands at $21.00, suggesting an upside potential of approximately 37% from current levels. However, it's worth noting that Colliers Securities downgraded BRT from Buy to Hold on March 14. In the context of insider purchases, Jeffrey Gould, as the company's president, is deeply involved in BRT's operations and strategy. His substantial buying may indicate confidence in the company's long-term prospects. Similarly, Matthew Gould's purchases as SVP and GOULD INVESTORS L P's participation as an institutional investor reinforce this confidence. In the broader context of the real estate market, the U.S. REIT sector has been under pressure since early 2025 due to rising interest rates and recession concerns. Particularly, Moody's downgrade of the U.S. sovereign credit rating from "Aaa" to "Aa1" on May 19 exacerbated market anxiety. However, recent easing of U.S.-China trade tensions and signs of moderating inflation provide some optimism for the real estate market. In this environment, multi-family housing REITs like BRT, especially those concentrated in the growing southeastern U.S. and Texas regions, may demonstrate resilience over the long term. Indeed, BRT's year-to-date return of +14.17% significantly outperforms the S&P 500's +1.34%. The recent insider purchases are especially noteworthy as they occurred when the stock was trading near its 52-week lows. This suggests insiders view the current price as an attractive entry point. Since investments in real estate REITs typically take a long-term perspective, these insider purchases may reflect confidence in growth prospects over the next several years. In summary, the concentrated buying by key insiders at BRT Apartments Corp during recent stock weakness sends a positive signal to the market. While the company's short-term profitability challenges and high debt levels warrant caution, its stable operating margins, high dividend yield, and portfolio focused on growth markets may appeal to long-term investors. This pattern of insider buying suggests their belief that the current stock price undervalues the company's intrinsic worth, providing an important reference point for investors interested in the real estate market.

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