Monday’s Insider Report: CEO and CFO are buying this high-yielding REIT with a 32% gain forecast

Featured below are companies that have experienced recent insider trading activity in the public market through their direct and indirect ownerships, including accounts they have control or direction over.

The list features insider transaction activity; it does not convey total ownership information as an insider may hold numerous accounts.

Keep in mind, when looking at transaction activities by insiders, purchasing activity may reflect perceived value in a security. Selling activity may or may not be related to a stock’s valuation; perhaps an insider needs to raise money for personal reasons. An insider’s total holdings should be considered because a sale may, in context, be insignificant if this person has a large remaining position in the company. I tend to put great weight on insider transaction activity when I see multiple insiders trading a company’s shares or units.

Listed below are three securities that have had recent buying activity in the public market reported by insiders.

NFI Group Inc. (NFI-T)

On May 9, chief financial officer Pipasu Soni bought 17,000 shares at an average price per share of approximately $12.29, raising this specific account’s holdings to 18,700 shares. The cost of this investment totaled nearly $209,000.

North American Construction Group Ltd. (NOA-T)

On May 2, chair of the board Martin Ferron invested over $235,000 in shares of NACG. He bought 15,000 shares at a price per share of $15.70, after which this specific account held 2,141,857 shares.

Mr. Ferron is the company’s former chief executive officer.

Primaris REIT (PMZ-UN-T)

On May 9, chief executive officer Alex Avery acquired 25,000 units at a price per unit of $13.50, after which this specific account held 275,000 units. The cost of this purchase exceeded $337,000.

On May 9 and 10, chief financial officer Rags Davloor bought a total of 20,000 units at an average price per unit of roughly $13.39, lifting this specific account’s holdings to 115,000 units. The cost of these purchases totaled over $267,000.

The REIT pays its unitholders a monthly distribution of 6.67 cents per unit, or 80 cents per unit yearly, equating to a current annualized yield of approximately 5.8 per cent.

Primaris owns and manages shopping malls and retail properties across the country with a high geographic exposure to Alberta (38 per cent of Net Operating Income), Ontario (36 per cent) and B.C. (15 per cent). The REIT also has properties in New Brunswick, Manitoba, and Quebec. Its top tenants include Canadian Tire, Walmart, Loblaws, TJX, Bell, Cineplex and Rogers.

According to Refinitiv, the REIT has two buy recommendations. The analyst at CIBC World Markers has a target price of $18.50 and the analyst at TD Securities has a target price of $18. The average one-year target price of $18.25 implies a potential price return of 32 per cent over the next year.

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Listed below is a stock that has had recent selling activity in the public market reported by an insider.

Imperial Oil Ltd. (IMO-T)

On May 6, assistant controller Bruce Jolly sold 19,949 shares at a price per share of $66.7593 in the public market leaving 11,104 shares in this particular account. Proceeds from the sale exceeded $1.3-million, not including trading fees.

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