Insider Unloading: Marguerite Nader Sells $2.49M Worth Of Equity Lifestyle Props Shares – Equity Lifestyle Props (NYSE:ELS)

Marguerite NaderPresident and CEO at Equity Lifestyle Props ADDEDreported an insider selling on September 17, according to a new SEC filing.

What happened: Nader’s latest move includes selling 33,000 shares of Equity Lifestyle Props. The information was recorded in a form 4 filing with the US Securities and Exchange Commission on Tuesday. The total value is $2,492,160.

Equity Lifestyle PropsIts shares are trading at $74.23, down 0.3% during Wednesday’s morning session.

Delve into Equity Lifestyle Props’s Background

Equity Lifestyle Properties is a residential REIT focused on condominiums, motorhome communities and marinas. The company currently has 451 properties across the US with a heavy concentration in the Sunbelt region with 38% of the company’s properties in Florida, 12% in Arizona, and 8% in California. Equity Lifestyle aims to own properties in attractive retirement areas with more than 70% of properties being age restricted or having residents over 55 years of age.

Equity Lifestyle Props: Financial Performance Divided

Revenue Increase: Equity Lifestyle Props revenue growth over a 3 month period is notable. As of June 30, 2024, the company has achieved a potential revenue growth rate of 2.65%. This represents a significant increase in the company’s core earnings. Compared to its industry peers, the company lags behind with a lower growth rate than its real estate sector peers.

Key Profit Indicators:

• Gross Margin: The company shows a low gross margin of 48.45%which reflects concerns about cost control and overall profitability relative to its industry peers.

• Earnings per Share (EPS): Equity Lifestyle Props’s EPS is a standout, showing a positive trend that exceeds the industry average with a current EPS of 0.42.

Credit Management: Equity Lifestyle Props debt-to-equity ratio is significantly higher than the industry average, reaching 2.41. This reflects a strong reliance on borrowed funds, raising concerns about financial strength.

Overall Quality:

• Price to Earnings (P/E) Ratio: Equity Lifestyle Props’s P/E ratio is 38.78 is below the industry average, suggesting that the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a higher ratio than the P/S ratio of 10.17Equity Lifestyle Props is considered to be very valuable in the market, especially in terms of sales performance.

• EV/EBITDA Analysis (Enterprise Value at its Earnings Before Interest, Taxes, Depreciation and Amortization): High EV/EBITDA ratio of 24.51 reflects the market’s recognition of the value of Equity Lifestyle Props, placing it at a premium compared to industry peers.

Market Organization Analysis: The company’s market capitalization is below the industry average, suggesting that it is relatively small compared to peers. This can be due to a variety of reasons, including perceived growth or performance.

Now trade stocks online for free with Charles Schwab, the trusted and comprehensive investment firm.

Impact of Internal Revenue on Investments

Insider transactions act as part of the problem in investment decisions, not the whole picture.

By law, an “insider” means any officer, director, or beneficial owner of more than ten percent of a company’s securities registered under Section 12 of the Securities Exchange Act of 1934. This may include executives in the c-suite and major hedge funds. These insiders must notify the public of their transactions by filling out form 4, which must be submitted within two business days after the transaction.

When a company insider buys a new stock, that’s a sign that they expect the stock to go up.

Insider selling, on the other hand, can be done for various reasons, and it may not mean that the seller thinks that the stock will go down.

Deciphering the meaning of transaction codes

For investors, the main focus is on transactions that take place in the open market, as shown in Schedule I of filling Form 4. A Q in Box 3 means to buy, when S means sales. Transaction code C shows the option change, and the transaction code A means a grant, award, or other distribution of resources from the company.

See the Complete List of Equity Lifestyle Props’s Insider Trades.

This article was produced by the Benzinga news engine and reviewed by an editor.