Gladstone Land rises 2.4% on high volatility, institutional shareholder Pioneer Investment Management Inc. buys 14 May 2019

NEWS BITES - NORTH AMERICA

Gladstone Land Corp. (NASDAQ:LAND), the NASDAQ's 14th largest Real estate company by market cap, traded between an intraday low of $US12.34 and a high of $US12.69. The price range has expanded in the last two days (from 17.0c two days ago to 35.0c today) which, accompanied by a price rise, is a bullish signal. The average daily volatility of 2.2% places Gladstone Land's stock in the 4th quartile in the market, meaning it is the least volatile. Today its volatility (highest price minus lowest price/lowest price) of 2.8% was 1.3 times the average daily volatility of 2.2%, up from 1.5% on Monday and 1.4% on Friday. A rise in the price on high volatility is a bullish signal. Gladstone Land's stock price has lifted 29.0c (2.4%) from its previous trading session to close at $US12.63 on Tuesday. Compared with the NASDAQ-100 Index which rose 77.8 points (1.1%) in the day, the relative price increase was 1.3%. There were 88,400 shares worth $US1.1 million traded today. The volume was 0.8 times the average daily trading volume of 104,307 shares. Its MCap is $US228.1 million.

TODAY'S NEWS

INSTITUTIONAL BUYING

Gladstone Land (NASDAQ:LAND) institutional shareholder Pioneer Investment Management Inc. (CIK:0001102598) bought 33,381 shares in the quarter ended March 31, 2019 worth $US420,779 at an estimated Volume Weighted Average Price (VWAP) of USD11.99. At the end of the quarter Pioneer Investment Management Inc. held 101,520 shares worth $US1.2 million.

Highlights in today's Report:

SECTION 1 TODAY'S BULLISH SIGNALS

SECTION 2 TODAY'S BEARISH SIGNALS

SECTION 3 PRICE VOLUME DYNAMICS

SECTION 4 RELATED NEWS

RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US12.63):

SECTION 5 THE PAST WEEK

SECTION 6 BULLISH PARAMETERS

SECTION 7 BEARISH PARAMETERS

SECTION 8 REPORTED BUYING AND SELLING

SECTION 9 SUMMARY FINANCIALS

SECTION 10 CORPORATE PROFILE

SECTION 1 GLADSTONE LAND BULLISH SIGNALS

1.1 Undervaluation [compared with sector average]:

+ To quote Benjamin Graham: "A dividend yield of at least two-thirds the triple-A bond yield"; the stock's dividend yield is 1.7 times the triple-A bond yield of 2.4%.

+ The relative yield of LAND, defined by its yield of 4.2%, divided by average yield of dividend yielding stocks in the NASDAQ-100 Index of 1.0% is 413.7%. This suggests Gladstone Land stock is undervalued in dividend yield terms.

+ Price to Book of 1.3 [4.7]. We estimate Gladstone Land stock is trading at a current year Price to Book of 0.8 and a forward year Price to Book of 0.6.

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.4. Compared with the rest of the market the stock is undervalued.

1.2 Undervaluation Indicators and rank of Gladstone Land in the NASDAQ market:

DescriptionValueRank In Market
Dividend Yield %4.22In Top Quartile

1.3 Short Selling:

+ The current short volume is 0.7 times its own historical average of 0.5%.

1.4 Uptrend:

+ Gladstone Land Corp. is placed 578/2479 in BuySellSignals' ranking of NASDAQ performers in the past week, a percentile ranking of 77.

+ In the past week, volume was 0.6 times average and the shares were up 1.0%. Tuesday's close price is at a 1.2% premium to its 5-day Volume Weighted Average Price (VWAP) of $US12.49.

+ The present value of $US1,000 (PV1000) invested one month ago in Gladstone Land is $US1,012, comprising a capital gain of $US8 and dividend reinvested of $US4.

PV$10001-week1-month1-year
LAND.NASDAQ1,0101,0121,079
NASDAQ-100 Index9699481,063

SECTION 2 GLADSTONE LAND BEARISH SIGNALS

2.1 Overvaluation [compared with sector average]:

+ Price/Earnings of 84.2 [31.8].

+ The reciprocal of P/E or Earnings yield of 1.2% is below the 10-year bond yield of 2.41%.

2.2 Overvaluation Indicators and rank of Gladstone Land in the NASDAQ market:

DescriptionValueRank In Market
Price/Earnings84.2In Bottom 1%
Price to Sales6.2In Bottom Quartile
P/E * P/NTA109.46In Bottom Quartile

2.3 Overbought/Bearish Signals:

+ The stock is overbought according to the Williams % R indicator of -16.7, suggesting the price is close to its 14-day high of $US12.70.

SECTION 3 GLADSTONE LAND PRICE VOLUME DYNAMICS

Volatility:

+ Gladstone Land is at a discount of 7.5% to its 12-month high of $US13.65 on December 11, 2018. It is also at a premium of 15.2% to the 12-month low of $US10.96 on December 26.

SECTION 4 GLADSTONE LAND RELATED NEWS

INSTITUTIONAL SELLING

Gladstone Land (NASDAQ:LAND) institutional shareholder Bard Associates Inc. (CIK:0001105907) sold 500 shares in the quarter ended March 31, 2019 worth $US6,303 at an estimated Volume Weighted Average Price (VWAP) of USD11.99. At the end of the quarter Bard Associates Inc. held 123,850 shares worth $US1.5 million.

RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US12.63):

SECTION 5 THE PAST WEEK

5.1 Snapshot: Gladstone Land stock was up 13.0c or 1.0% in the past week. Volume in the week was 0.6 times average trading of 521,535 shares. It outperformed the NASDAQ-100 index in 4 out of 5 days.

DayGladstone LandClose price [USD]Price change %Relative change %Comment
MondayDecreases 1.1%12.34-1.12.3Steepest Fall
FridayIncreases12.480.50.4Top Rise
ThursdayDecreases12.42-0.7-0.3
WednesdayInches higher12.510.10.4
TuesdayDecreases12.5-0.51.5

SECTION 6 GLADSTONE LAND BULLISH PARAMETERS

6.1 Growth:

Quarterly Trend in Revenue and Net Profit Margin:

+ Revenue growth has shown signs of recovery in recent quarters. [All figures in %]

Qtr-endedRevenue GrowthNet Profit Margin
Dec 18 [Q4]0.2-13.5
Sep 18 [Q3]-29.675.1

Annual Trend in Revenue, EPS and EBITDA:

+ Revenue growth rate is positive and has seen consecutive rises in recent years. [Year ended, all figures in %]

YearRevenue GrowthEPS GrowthEBITDA Growth
Dec 1745.3-45.3
Dec 1644.5-42.948.9

6.2 Moving Annual Return (Past 5 years)

Based on a dynamic start date of 5 years ago, the real rate of return has averaged 9.9%. The Moving Annual Return has consistently exceeded 1%.

LANDClose (USD)Dividends (USD)Capital Gain / (Loss) %% YieldAnnual Return %
May 1412.630.533.34.47.6
1 Yr ago12.230.5318.15.123.2
2 Yrs ago10.360.516.35.211.5
3 Yrs ago9.740.48156.0
4 Yrs ago9.650.42(2.9)4.31.3

Close 5 years ago $US9.94

6.3 Present value of USD1,000 invested five years Ago

+ The present value of USD1,000 (PV1000) invested five years ago in Gladstone Land is $US1,604, including a capital gain of $US271 and dividend reinvested of $US333.

+ 5 years Multiplier in USD = 1.604x

+ Annualized Total Shareholder Returns (TSR) in USD = 9.9%

6.4 Increased ADVT past five years

Avg. Daily Volume Traded 12 months ended May 14, thousand shares

YearADVT
2019104.3
201871.8
201735.5
201635.6
201528.2

In the past five years, Average Daily Volume of Trading (ADVT) has increased 270.2% to 104,307 shares.

6.5 Increased VWAP

Past five years, 12 months ended May 14 (USD)

YearHigh PriceVWAPLow Price
201913.6512.2210.96
201813.7912.2810.31
201712.1210.48.77
201610.198.446.07
201511.789.677.69

In the past five years Volume Weighted Average Price (VWAP) has increased by 26.4% to $US12.22. Based on a dynamic start date of five years ago, there have been declines in VWAP in 2 out of 5 years.

6.6 Increased Average Daily Turnover

Past five years, 12 months ended May 14 (USD million)

YearAverage Daily Turnover
20191.3
20180.89
20170.37
20160.3
20150.27

In the past five years, average daily share turnover has increased 363.6% to $US1.3 million. This suggests increased liquidity.

6.7 Increase in Institutional Ownership

Quarter-endDecember 31, 2017September 30, 2018December 31, 2018
Holdings (%)20.429.531.1

As at December 31, 2018 Institutions held 31.1% of total shares on issue; an increase from 29.5% as at September 30, 2018 and 20.4% as at December 31, 2017.

6.8 Increase in Insider Buying

In the past 5 years a total of 224,072 Gladstone Land shares worth $US2.4 million were bought by insiders. Based on a dynamic start date of 5 years ago, insider buying has averaged 44,814 shares per year. In the past year, insiders bought 100,000 shares, an increase of 290.0% from the previous year.

SECTION 7 GLADSTONE LAND BEARISH PARAMETERS

7.1 Performance:

+ Return on Equity 1.5% [9.2%].

+ Return on Assets 0.5% [3.9%].

+ Net profit margin has averaged 3.4% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

7.2 Low Performance Indicators and rank of Gladstone Land in the NASDAQ market:

DescriptionValueRank In Market
Return on Assets [ROA] %0.5In Bottom 5%
Return on Equity [ROE] %1.5In Bottom 6%

SECTION 8 GLADSTONE LAND REPORTED BUYING AND SELLING

8.1 Institutional Buying and Selling Quarter Ended December 31

Total reported Institutional buying = 438,224 shares

Total reported Institutional selling = 435,810 shares

Net reported institutional buying = 2,414 shares

8.2 Reported Holdings of Institutions as at Dec 31, 2018

Total = 5,618,487 shares

Market Value = $US63.6 million

Institutions hold 31.1% of Issued Shares.

SECTION 9 GLADSTONE LAND SUMMARY FINANCIALS

9.1 Dividend History

+ Trailing 12 months dividend for the 12 months ended May 14 has improved from 42.50c in 2015 to 53.26c in 2019.

9.2 Financials Summary

Year endedDec 2018Dec 2017Dec 2016
Sales (USD M)36.725.117.4
Pretax (USD)--473,000
Net (USD)2.2M(31,000)448,000
EPS (USD)0.15-0.04

+ Net profit was up 402.2% from US$448,000 in 2016 to US$2.2 million in 2018.

+ Earnings Per Share (EPS) was up 275% from 4.0c to 15.0c in the 2-year period.

SECTION 10 CORPORATE PROFILE

10.1 Activities

Gladstone Land Corporation acquires farmland that it rents to corporate and independent farmers on a triple-net lease basis. The Company leases its farms for farming various crops, including strawberries, lettuce, cabbage, radicchio, cantaloupes, watermelons, okra, peas, grape tomatoes, raspberries, and blueberries. Gladstone Land conducts business throughout the United States.

10.2 Top Management

The chief executive officer and chairman is David J. Gladstone and the chief financial officer is Lewis Parrish.

10.3 Issued Capital and MCap

Based on 18,059,000 issued shares the market capitalisation is $US228.1 million.

COMPANY IDENTIFIERS

Contact: +1 703 287-5800

Physical Address: 1521 Westbranch Drive, Suite 100, McLean, VA,22102

State/Province/Country: VA, United States

Country of Incorporation: United States

Industry [NAICS]: 531210

Exchange: NASDAQ

Economic Sector: Financials

Business Sector: Real Estate

ISIN: US3765491010

O:LAND; LAND.O

PermID: 5001153934

RIC: LAND.O

CIK: 1495240

CUSIP: 376549101

Gladstone Land Corp

Source: www.BuySellSignals.com