On May 24, 2023, Joey Agree, President and CEO of Agree Realty Corp (NYSE:ADC), purchased 5,000 shares of the company's stock. This move is part of a broader trend of insider buying at Agree Realty Corp, with nine insider buys over the past year and no insider sells during the same period. In this article, we will take a closer look at Joey Agree, Agree Realty Corp, and the implications of this insider buying activity.
Who is Joey Agree?
Joey Agree has been the President and CEO of Agree Realty Corp since 2013. Under his leadership, the company has experienced significant growth and expansion. Prior to his current role, Agree served as Executive Vice President and Chief Operating Officer of the company. He holds a Bachelor of Arts degree from the University of Michigan and a Juris Doctor degree from the New York Law School.
About Agree Realty Corp
Agree Realty Corp is a real estate investment trust (REIT) that focuses on the acquisition, development, and management of retail properties. The company's portfolio primarily consists of properties leased to industry-leading retail tenants, including supermarkets, drugstores, and home improvement stores. Agree Realty Corp's strategy is to generate consistent, long-term returns for its shareholders by investing in high-quality retail properties with strong tenant covenants.
Insider Buying Analysis
Over the past year, Joey Agree has purchased a total of 15,000 shares of Agree Realty Corp and has not sold any shares. This recent purchase of 5,000 shares on May 24, 2023, further demonstrates his confidence in the company's prospects. The fact that there have been nine insider buys and no insider sells over the past year suggests that Agree Realty Corp's management team is optimistic about the company's future performance.
Stock Price Relationship
On the day of Joey Agree's recent purchase, shares of Agree Realty Corp were trading at $64.91 apiece, giving the stock a market cap of $6,001.980 million. The price-earnings ratio of 35.98 is higher than the industry median of 14.45 and higher than the company's historical median price-earnings ratio. This suggests that the stock may be overvalued compared to its peers and its own historical valuation.
However, with a price of $64.91 and a GuruFocus Value of $76.60, Agree Realty Corp has a price-to-GF-Value ratio of 0.85. This indicates that the stock is modestly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, which takes into account historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
Conclusion
The recent insider buying activity by Joey Agree, along with the overall trend of insider buys at Agree Realty Corp, suggests that the company's management team is confident in its future prospects. While the stock's price-earnings ratio may be higher than the industry median and its historical median, the price-to-GF-Value ratio indicates that the stock is modestly undervalued. Investors should consider these factors when evaluating Agree Realty Corp as a potential investment opportunity.
