STRW

Strawberry Fields REIT ($STRW): Insiders Buy $1.8M After Major Shareholder's $3.08M Selloff Triggers 25% Drop

06/17/2025 04:19

Strawberry Fields REIT ($STRW) is drawing investor attention following a dramatic sequence of events: a major shareholder's massive selloff in December 2024 triggered a sharp price decline, but this was immediately followed by aggressive insider buying that signals strong management confidence. Strawberry Fields REIT is a healthcare-focused real estate investment trust headquartered in Indiana, specializing in skilled nursing facilities, assisted living facilities, and long-term acute care hospitals. The company owns 109 healthcare facilities with 12,449 beds across nine states in the Midwest and South, positioning itself as a pure play on America's aging demographic trends. The most compelling aspect of this story lies in the insider trading patterns. On December 5, 2024, Alyeska Investment Group, a major shareholder, dumped 300,000 shares at an average price of $10.28, representing $3.08 million in selling pressure. This massive disposal immediately sent shares plummeting 25% from the $12 range to the $9 range. However, this selloff triggered an immediate and decisive response from company insiders. CEO Moishe Gubin led the charge with purchases totaling approximately $2.8 million between December 3-6, acquiring 250,000 shares. Directors Jack Levine and Michael Blisko also stepped in with significant purchases. This buying spree continued through 2024 and into 2025, with insiders accumulating approximately $1.8 million worth of shares total. Most recently, Gubin made small but consistent purchases in June 2025, demonstrating ongoing conviction. The company's financial fundamentals support this insider confidence. Trailing twelve-month revenue reached $126.56 million, up 34% year-over-year, while maintaining an impressive 54.12% operating margin. EBITDA stands at $104.08 million with 100% rent collection rates, indicating strong tenant stability. The dividend yield of approximately 5.3% significantly exceeds REIT sector averages. However, investors must carefully consider the leverage profile. The debt-to-equity ratio of 818% is extremely high, even by REIT standards. While this leverage amplifies returns in good times, it creates vulnerability to interest rate increases or cash flow disruptions. Total debt stands at $713.52 million, requiring careful monitoring of refinancing risks. The stock currently trades at $10.60, representing an 18% discount from its 52-week high of $12.90. Analyst price targets range from $13.10-$13.50, suggesting upside potential of over 20%. The recent inclusion in the Russell 3000 Index and dual listing on the Tel Aviv Stock Exchange have expanded the investor base and capital access options. For income-focused investors, the combination of healthcare real estate's defensive characteristics, attractive dividend yield, and current valuation discount presents a compelling opportunity. However, the elevated leverage requires close attention to debt management and dividend sustainability. The consistent insider buying provides a strong vote of confidence that current prices represent attractive entry points for patient, long-term investors.

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