BRT

BRT Apartments Corp ($BRT) Executives Signal Strong Confidence with $1.6M Stock Purchases Amid 20% Decline

05/28/2025 21:00

BRT Apartments Corp ($BRT) shares have declined approximately 20% year-to-date, but company executives have responded with confidence, purchasing roughly $1.6 million worth of stock during May in a series of coordinated insider transactions. Listed on the New York Stock Exchange with a market capitalization of about $300 million, $BRT is a residential real estate investment trust (REIT) that owns and operates 29 multifamily properties totaling 7,947 units across the Southeastern United States and Texas. The company specializes in garden-style apartments targeting middle-income residents. Recent SEC filings reveal that President Jeffrey Gould, Senior Vice President Matthew Gould, and affiliated entity Gould Investors L.P. made consecutive stock purchases from May 12-28. While the ownership structure results in multiple filings for what appears to be coordinated investment decisions, the purchases occurred at prices ranging from $15.05 to $15.82 per share, closely aligned with current trading levels. These insider purchases signal strong management confidence despite the stock's recent weakness. $BRT shares peaked around $19 in November 2024 before declining to current levels in the high-$15 range. However, analysts maintain an average price target of $21, suggesting approximately 35% upside potential. Financially, $BRT faces profitability challenges while demonstrating revenue growth. The company reported 2024 revenue of $98.16 million, up from prior years, but posted a net loss of $8.53 million. While the high debt-to-equity ratio of 2.4x presents leverage concerns, operating cash flow remained solid at $24.14 million. The company's attractive dividend yield of approximately 6.3% continues to appeal to income-focused investors. From a real estate market perspective, $BRT's portfolio concentration in the Southeastern U.S. and Texas positions the company to benefit from ongoing population growth and economic expansion in these regions. However, rising interest rates and construction costs present sector-wide headwinds for REITs. The insider buying activity extends beyond mere financial investment, representing management's conviction in the company's long-term prospects. The Gould family holds a significant ownership stake, and their continued share accumulation sends a clear message that current weakness may be temporary. Analysts view the combination of revenue growth, stable dividend policy, and insider buying as compelling factors at current price levels. However, the company's high leverage and pace of profitability improvement remain key monitoring points for investors.

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