BRT

BRT Apartments ($BRT) Sees Continued Heavy Insider Buying...6.2% Dividend Opportunity vs Debt Risk

09/11/2025 20:51

BRT Apartments Corp ($BRT) is a small-cap Real Estate Investment Trust (REIT) operating a portfolio of 30 multi-family properties totaling 8,161 units across 11 states, primarily concentrated in the Southeast and Texas regions. Founded in 1972 and headquartered in Great Neck, New York, the company operates with a lean structure of just 8 full-time employees, focusing primarily on garden-style apartment communities with amenities such as clubhouses, pools, and laundry facilities. A striking pattern has emerged in $BRT's insider trading activity that warrants investor attention. Following sales by CEO George Zweier and officer Mitchell Gould in the first half of 2024, the trading dynamics completely shifted in May 2025. President Jeffrey Gould, SVP Matthew Gould, and major shareholder Gould Investors LP began aggressive buying when shares hit their low of $14-15 range. The timing of these purchases is particularly noteworthy. Starting when the stock bottomed at $14.87 in April 2025, these insiders consistently added to their positions through August. In September, Director Fredric Gould joined the buying spree, purchasing 31,600 shares over three days. However, it's important to note that many of these transactions appear to be duplicate filings due to ownership relationships, meaning the actual trading volume is likely lower than the reported number of filings suggests. $BRT's financial picture presents mixed signals. While the company generates $98.4 million in annual revenue with steady growth, it reported an $8.66 million net loss over the trailing twelve months. However, operating cash flow remains positive at $24.1 million, supporting the company's ability to maintain its attractive $1.00 annual dividend, yielding approximately 6.2%. The most concerning aspect is the company's debt-to-equity ratio of 252%, representing $483.6 million in total debt. This high leverage poses risks in a rising interest rate environment, though it's typical for REITs that use debt to finance property acquisitions. The company continues expanding its portfolio, recently acquiring an apartment complex in Auburn, Alabama. Analysts maintain a 'Buy' rating on $BRT with a median price target of $21, suggesting significant upside potential from current levels. B. Riley Securities recently lowered its target from $22 to $21 but maintained its buy rating. The upcoming earnings report on November 6th will be crucial, with analysts expecting a $0.16 per share loss, though recent quarters have consistently beaten expectations. For investors, $BRT presents a classic risk-reward scenario: attractive dividend yield and strong insider buying signal confidence, but high leverage and recent losses raise concerns about financial stability. The concentrated insider buying during the stock's weakness could indicate management's belief in an impending turnaround, making this a potentially interesting opportunity for income-focused investors willing to accept higher risk.