Form 4: Agree Realty Director Boosts Stake After Share Gift

Agree Realty Corp. Director John Rakolta Jr. reported a gift of 11,549 common shares followed by an open market purchase of 15,000 common shares.

Summary

• John Rakolta Jr., a Director of Agree Realty Corp. (ADC), reported changes in his beneficial ownership.
• On December 22, 2025, Rakolta Jr. disposed of 11,549 common shares via a gift transaction at a price of $0.
• Following the gift, his direct beneficial ownership was 547,605.801 common shares.
• On December 24, 2025, Rakolta Jr. acquired 15,000 common shares through an open market purchase.
• The shares were purchased at a weighted average price of $72.18, with individual transaction prices ranging from $72.03 to $72.32.
• After these transactions, his direct beneficial ownership increased to 562,605.801 common shares.
• The reported beneficial ownership also includes 5,454.303 shares acquired through a dividend reinvestment plan since the last Statement of Changes in Beneficial Ownership.

Sentiment

Score: 8

Explanation: The significant open market purchase by a director, outweighing a gift disposition, indicates strong insider confidence in the company's stock value and future performance.

Positives

• Director John Rakolta Jr. made a significant open market purchase of 15,000 common shares, indicating confidence in the company's future.
• The purchase price of $72.18 per share suggests management believes the stock is a good value at that level.
• The net effect of the reported transactions (gift + purchase + DRIP) is an increase in the director's overall beneficial ownership.

Negatives

• The disposition of 11,549 common shares via a gift, while common for estate planning, represents a reduction in direct ownership without monetary compensation to the director.

Future Outlook

NA

Industry Context

Insider buying, especially by a director, is often interpreted by the market as a positive signal, suggesting that those closest to the company believe its shares are undervalued or expect positive developments. This can be particularly relevant in the REIT sector, where investor confidence in management's strategic decisions and asset valuations is key.

Related Party Transactions

• The disposition of 11,549 common shares via a gift transaction could be considered a related party transaction if the recipient is a family member or entity controlled by the director, though the filing does not specify the recipient.

Stakeholder Impact

• Shareholders may view the director's purchase as a positive indicator of the company's intrinsic value and future growth potential, potentially boosting investor confidence.
• The increase in insider ownership aligns management's interests more closely with those of public shareholders.

Key Dates

Recommendation

The significant open market purchase by a director, John Rakolta Jr., at a weighted average price of $72.18, following a gift disposition, demonstrates strong insider confidence in Agree Realty Corp.'s current valuation and future prospects. Insider buying is generally considered a bullish signal, suggesting that those with the most intimate knowledge of the company believe the stock is undervalued or poised for positive performance. This action aligns management's interests with shareholders and warrants a positive outlook.

Keywords

AGREE REALTY CORP, ADC, Form 4, insider transaction, director, share purchase, stock acquisition, beneficial ownership, real estate, REIT