We recently compiled a list of the 10 Large-Cap Stocks Insiders Are Buying Recently. In this article, we are going to take a look at where Simon Property Group, Inc. (NYSE:SPG) stands against the other large-cap stocks.
Investors should closely monitor insider trading activity as it can provide valuable insights into a company’s future prospects. Insiders, such as executives and directors, possess intimate knowledge of the company’s operations and strategic direction. When these individuals invest their own capital in company stock, it often signals strong confidence in the company’s future performance.
While not an infallible indicator, significant insider buying activity can suggest that the company may be undervalued or poised for growth. Conversely, while insider selling can have various motivations, it can sometimes signal concerns about the company’s future.
It’s crucial to remember that insider trading activity should be analyzed within the broader context of the company’s fundamentals, industry trends, and overall market conditions. A stock seeing heavy insider buying doesn’t always mean it will go up sharply in the future. Therefore, investors should carefully consider the underlying reasons for insider transactions and conduct thorough due diligence before making investment decisions based on this information alone. By carefully analyzing insider trading activity alongside other relevant factors, investors can gain valuable insights into a company’s prospects and make more informed investment decisions.
To come up with the 10 names, we only considered stocks with a market capitalization of more than $10 billion. We first used Insider Monkey’s insider trading stock screener and looked for stocks with at least two insiders buying over the last six months.
With each stock we note the number of recent insider purchases and the company’s current market capitalization. But why is it important to follow insider activity? Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A rooftop view of a bustling downtown area, emphasizing the company’s investments in the real estate sector.
Simon Property Group, Inc. (NYSE:SPG)
Number of Recent Insider Purchases: 22
Market Cap: $65.8 billion
Simon Property Group is a well-known real estate investment trust (REIT) mostly concentrated on owning and managing popular shopping, entertainment, dining, and mixed-use destinations. Its portfolio include world-famed companies as tenants, such as Apple (NASDAQ:AAPL), Nike (NYSE:NKE), and various other luxury brands.
One of the 12 Best REIT Stocks to Buy Now, Simon Property Group is appraised for the choice of its tenants, which are known for strong foot traffic, especially as the retail sector is recovering from the COVID-19 pandemic. Furthermore, the company has partnered with e-commerce giants like Amazon (NASDAQ:AMZN) and Bonobos, transforming some of its properties into distribution centers.
For the third quarter of 2024, Simon Property Group disclosed a net income attributable to common stockholders of $475.2 million, or $1.46 per diluted share, as compared to $594.1 million or $1.82 per diluted share in 2023. The company declared a quarterly common stock dividend of $2.10 for the fourth quarter of 2024. This is an increase of $0.20, or 10.5% year-over-year.
As of Sept. 30, Simon Property Group owned or held an interest in 196 income-producing properties in the US, comprising 93 malls, 70 premium outlets, 14 mills, six lifestyle centers, and 13 other retail properties in 37 states and Puerto Rico.
Over the last 12 months, Simon Property Group shares gained 25.05%, reaching $177.24 per share.
Overall SPG ranks 4th on our list of the large-cap stocks insiders are buying recently. While we acknowledge the potential of SPG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SPG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
