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One real estate investment trust player that insiders are in love with here is
Digital Realty Trust (
DLR), which is engaged in the business of owning, acquiring, developing, redeveloping and managing technology-related real estate. Insiders are buying this stock into weakness, since shares are off by 19% so far in 2013.
Digital Realty Trust has a market cap of $7 billion and an enterprise value of $12 billion. This stock trades at a reasonable valuation, with trailing price-to-earnings of 38.19 and a forward price-to-earnings of 10.43. Its estimated growth rate for this year is 8.4%, and for next year it's pegged at 9.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $24.26 million and its total debt is $4.7 billion. This stock currently sports a dividend yield of 5.7%.
>>5 REITs to Call Bernanke's Bluff
The CFO just
bought 10,000 shares, or about $529,000 worth of stock, at $52.94 per share.
From a technical perspective, DLR is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock recently formed a double bottom chart pattern at $50.23 to $50.26 a share. Following that bottom, shares of DLR have started to spike notably higher and it's quickly moving within range of triggering a big breakout trade.
If you're bullish on DLR, then look for long-biased trades as long as this stock is trending some key near-term support at $52 or at $50.23, and then once it breaks out above some near-term support levels at $55.44 to $55.65 a share to its 50-day at $55.94 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 1.65 million shares. If that breakout hits soon, then DLR will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day at $62.15 a share to more resistance at $64.47 a share.