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🤑Let the buying BEGIN!!
Published 10 days ago • 4 min read
It finally happened. For the first time in 538 days, the CEO of a company I own bought more of his stock with personal cash.
Joey Agree, CEO of and you'll never believe it Agree Realty (ADC) bought 4,850 shares x $72.15 for $349,928 of his own money. No stock options, grants or gifts from the company.
CEO-Buys.com
When a CEO buys their own stock, it's a great sign because they're telling us loud and clear they expect the share price to be higher than it is right now. And, when you couple that with the fact that they continue to hold those shares they bought, it's a very compelling situation.
From what I know:
Joey Agree has been CEO since 2013
He's made 19+ transactions - ALL purchases
The company shows a pattern of insider buying with zero insider sales
This is the first time that Joey has also bought above $67, which is notable because I think he's also acknowledging that the company has become more valuable as well.
Agree Realty is a company that owns and develops properties for retail stores, primarily focusing on properties leased under net leases to major retail tenants like Walmart, Dollar General, and Tractor Supply Co. They are also a real estate investment trust (REIT), which means they allow people to invest in their portfolio of commercial real estate and receive dividends from the rental income.
To keep it incredibly brief, the company has grown, the balance sheet is rock solid, they have mostly stable, recession resistant tenants, management that thinks like shareholders because they are and their credit rating was just upgraded by Fitch to A-.
SimplySafeDividends.com
According to SimplySafeDividends.com, Agree Realty has a dividend safety score of 70 and is at the lower end of the reasonably valued range.
Do you ever feel hesitant to buy more and average up on a company just because you have a really low cost basis? I do all the time and it's a really bad idea and a great way to miss out on future gains!
A simple mental exercise is to ask yourself, "Is the company making more money and is more profitable today than it was where my average cost is?"
If the answer is yes, then waiting for a pullback to that range could be a fool's errand and barring something near catastrophic, it's illogical it would ever go back there.
Before adding Agree Realty this week, my average cost was about $59, which I was waiting for that range to buy more. It may get there, but if the company has grown and become more profitable, the chance of it falling there gets worse. Like, by a lot.
My thoughts were to just bite the bullet and pay up for what I believe to be a quality company. And, when I saw the ratings upgrade, that was enough of a reason for me... And apparently Joey Agree too.
I did sell 100 more shares of Realty Income as we've discussed I'd be doing HERE, and now I'm up to 155 shares of Agree realty, with an average cost of $63.97.
The plan is to keep adding to Agree Realty (ADC) and VICI Properties (VICI) funded by the sale Realty Income shares.
One last note on REITs- You don't want to buy them for growth (although some have held their own), but for steadily growing and stable dividend income.
Because I have many years ahead of me before the age of 59-1/2 (when we can begin to withdraw penalty free from retirement accounts in the USA), I want lots of growth!
We hold our REITs in an IRA because they are pass through entities that must pay 90% of their taxable income to shareholders, which means REIT dividends are usually taxed as ordinary income. This means they’re taxed at your regular income tax rate instead of the lower rate for qualified dividends.
I think a well rounded investment portfolio includes Real Estate. I just don't want to worry about tenants or toilets... so REITs are a fantastic way to gain immediate exposure.
Have you recently bought stock because its CEO has? Hit that reply button and let me know about it. I'll respond to every reply!
Disclaimer: This is not investment advice, just one person's opinion that may be incorrect. Do your own research before making any investment decisions.
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