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What Does the High Insider Activity on NLY Stock Indicate?
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What Does the High Insider Activity on NLY Stock Indicate?

Story Highlights

A top insider’s large share purchase of the company alludes to the fact that its future growth path seems clear.

In a recent filing with the Securities Exchange Commission (SEC), Finkelstein David L, the CEO and top shareholder of Annaly Capital Management (NYSE: NLY) recently revealed that he has increased his stake in the company.

A top shareholder is one who owns a stake of more than 10% in the company.

Annaly Capital is one of the leading mortgage real estate investment trusts (REITs) headquartered in New York City. Presently, the company commands a market cap of $8.34 billion.

The stock was up more than 5.5% in Friday’s trading session to close at $5.80.

Details of the Rise in Stake

On June 17, Finkelstein David L bought 200,000 shares at an average price of $5.56, valued at about $1.11 million. Following the acquisition, the CEO and Director now owns 1,669,013 shares of the company.

Stock Rating

Recently, KBW analyst Bose George upgraded the stock to a Buy from a Hold, raising the price target from $6.25 to $6.75. This new target now implies an upside potential of 18.4%, from current levels.

The Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on three Buys and seven Holds. The average NLY price target of $6.53 implies that the stock has upside potential of 14.6% from current levels.

Insider Trading Activity

Overall, the TipRanks’ Insider Trading Activity tool shows that confidence in NLY is currently Positive based on informative transactions by one insider over the past three months. Corporate Insiders have bought shares worth $1.1 million over this period.

Conclusion

With the CEO of the company accumulating shares, and in such large quantities, Annaly’s prospects seem bright as it looks to come out of the prevailing adverse economic environment less damaged.

Disclosure

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