Wednesday , October 4 2023

American Homes 4 Rent Receives Positive Rating and Insider Transactions Provide Insights for Investors

American Homes 4 Rent, a real estate investment trust (REIT) specializing in single-family rental homes, has received a “Moderate Buy” rating from the seventeen research firms currently covering the company, according to Bloomberg Ratings. Out of these analysts, eight have given a hold recommendation while nine have issued a buy recommendation for the stock. The average one-year price target determined by analysts who have covered the stock in the past year stands at $37.19.

In recent news, it has been reported that Director Douglas N. Benham purchased 2,000 shares of American Homes 4 Rent’s stock on Thursday, August 10th. The average price per share was $22.82, resulting in a total transaction value of $45,640. Following this acquisition, Director Benham now directly owns a total of 8,000 shares in the company with an approximate value of $182,560. This transaction was disclosed through a document filed with the Securities and Exchange Commission (SEC), accessible through their website.

Moreover, Director Benham also acquired 2,000 shares of American Homes 4 Rent’s stock on the same day for the same average price per share and total transaction value as mentioned earlier. Consequently, his ownership increased to 8,000 shares valued at $182,560 following this second purchase.

Another notable transaction involves Chief Accounting Officer Brian Reitz selling 1,800 shares of American Homes 4 Rent’s stock on Monday July 31st at an average price per share of $37.47. This resulted in a total transaction value of $67,446. After completing this sale, Reitz holds approximately 36,210 shares in the company worth an estimated $1,356,788.70. Details regarding this sale can be found in the disclosure provided here by American Homes 4 Rent.

Over the past three months alone corporate insiders have sold off a total of 43,693 shares of company stock, amounting to a total value of $1,582,090. As a result, these insiders currently hold approximately 6.03% of American Homes 4 Rent’s stock.

Additionally, the business recently announced its intention to issue a quarterly dividend on Friday, September 29th. Stockholders on record as of Friday, September 15th will receive a dividend payment of $0.22 per share. The ex-dividend date is set for Thursday, September 14th. This translates to an annualized dividend payout of $0.88 and a dividend yield of 2.49%. Presently, American Homes 4 Rent’s dividend payout ratio stands at 89.80%.

In conclusion, American Homes 4 Rent has received an overall positive rating from analysts with a consensus recommendation of “Moderate Buy”. Recent acquisitions and sales by company insiders provide insights into the market sentiment surrounding the stock. Furthermore, the upcoming dividend payment may attract potential investors seeking consistent returns on their investment in the real estate industry.

American Homes 4 Rent


Strong Buy

Updated on: 07/09/2023

Price Target

Current $36.23

Concensus $41.65

Low $32.00

Median $43.00

High $47.00

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Social Sentiments

We did not find social sentiment data for this stock

Analyst Ratings

Analyst / firm Rating
Jefferies Sell
Evercore ISI Buy
RBC Capital Buy
Barclays Buy
Richard Hill
Morgan Stanley

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Analyst Recommendations and Institutional Support Signal Potential for American Homes 4 Rent Investment

In recent news, a number of analysts have provided their insights and perspectives on the shares of American Homes 4 Rent (AMH). These evaluations have played a crucial role in assessing the value and potential of the company. Barclays, for instance, has increased its price objective on AMH shares from $41.00 to $43.00, giving the stock an “overweight” rating. This adjustment reflects a positive outlook on the company’s performance and suggests that it may be a good investment option.

Similarly, Royal Bank of Canada also raised its price objective on AMH shares from $38.00 to $39.00, providing an “outperform” rating. This indicates confidence in the company’s ability to outperform market expectations and deliver favorable returns to investors.

B. Riley is another analyst firm that increased its price objective on AMH shares from $36.00 to $42.00 with a “buy” rating attached to it. This endorsement emphasizes the potential growth prospects and value creation opportunities associated with investing in American Homes 4 Rent.

Furthermore, recently initiated coverage on AMH shares with a “hold” rating for interested investors seeking a more neutral position within their portfolios.

Adding to these expert opinions, Morgan Stanley raised its price objective on AMH shares from $34.50 to $37.00, signifying an “equal weight” rating for the stock’s performance against market benchmarks.

In addition to these analyst recommendations, American Homes 4 Rent has announced a quarterly dividend scheduled for payment on September 29th, 2023. Shareholders of record as of September 15th will receive a dividend of $0.22 per share, leading to an annualized dividend amounting to $0.88 per share and yielding approximately 2.49%. The fact that American Homes 4 Rent maintains such an impressive dividend payout ratio at 89.80% serves as a testament to the company’s commitment to returning value to its shareholders.

Looking at institutional investors’ activities, several hedge funds and other institutions have recently bought and sold AMH shares. For example, Charles Schwab Investment Management Inc. increased its position in American Homes 4 Rent by 2.8% during the first quarter. Elo Mutual Pension Insurance Co also boosted its position in the company by 5.2% during the same period. These investments demonstrate confidence in the company’s performance and potential for growth.

ExodusPoint Capital Management LP also entered as a new stakeholder into American Homes 4 Rent with an investment amounting to approximately $745,000 in the first quarter. Quadrant Capital Group LLC followed suit by boosting its position in the company by 47.0% in the fourth quarter of last year.

Additionally, Mitsubishi UFJ Trust & Banking Corp increased its position in American Homes 4 Rent by 5.2% during the fourth quarter, further indicating institutional support and interest in the stock.

When considering market dynamics, AMH shares opened at $35.39 on September 7th, 2023. The stock has experienced a year-long price range between $28.78 and $37.97, indicating some volatility within this period.

Currently, American Homes 4 Rent holds a market capitalization of $12.81 billion with a price-to-earnings (P/E) ratio of 36.11 and a price-to-earnings growth (P/E/G) ratio of 3.46. These metrics suggest that the stock may be considered relatively expensive compared to its earnings growth prospects.

With regards to liquidity ratios, the company maintains a current ratio and quick ratio of 0.69 each, indicating that it may face some challenges meeting short-term financial obligations due to potentially limited liquid assets or cash flow availability.

Furthermore, American Homes 4 Rent has maintained a debt-to-equity ratio of 0.58. This implies that the company has a relatively conservative capital structure where it relies more on equity financing rather than debt.

In conclusion, American Homes 4 Rent has garnered positive attention and assessments from various analysts in recent months. The upward revisions in price objectives and favorable ratings showcase its potential as an investment option. Furthermore, institutional investors have shown confidence in the company by establishing or increasing their positions. However, potential investors should remain cautious, considering the volatility of AMH shares within the market and evaluating their own risk tolerance before making any investment decisions.

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