Value Hunters: Look To American Homes 4 Rent (AMH)

FIVE Stock
FIVE Stock

Principal Global Investors LLC recently announced the acquisition of new stake in American Homes 4 Rent (NYSE:AMH). The institutional investor has increased its shareholding in the Real Estate company by 19.57% to 17.64 million shares with purchase of 2.89 million shares. This fresh investment now brings its stake to 5.87% valued currently at $474.44 million. In addition, BlackRock Fund Advisors raised its holdings by 0.27 million to 15.34 million shares. And SSgA Funds Management, Inc. has lifted its position by 1.04% or 99291.0 shares – to 9.66 million shares.

With over 1.46 million American Homes 4 Rent (AMH) shares trading Tuesday and a closing price of $28.17 on the day, the dollar volume was approximately $41.01 million. The shares have shown a positive weekly performance of 1.55% and its price on 07/21/20 gained nearly 2.51%. Currently, there are 300.81M common shares owned by the public and among those 255.88M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 15 analysts who have offered their price forecasts for AMH have a consensus price objective of $28.85. The analysts have set the share’s price value over the next 12 months at a high of $34.00 and a low of $23.00 should the stock experience a downside. Incidentally, analysts’ outlook for the American Homes 4 Rent stock is 2.30 for the next 12 months. The average price target is 2.09% above its last price level and an upside to the estimated low will see the stock lose -22.48% over that period. But an upside of 17.15% will see the stock hit the forecast high price target while mean target price for the stock is $29.00.

Insiders at the company have transacted a total of 68 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 35 of these insider trades were purchases, accounting for 3,719,042 shares. Insider sales of the common stock occurred on 33 occasions, with total insider shares sold totaling 328,055 shares.

The top 3 mutual fund holders in American Homes 4 Rent are Vanguard Real Estate Index Fund, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. Vanguard Real Estate Index Fund owns 12.11 million shares of the company’s stock, all valued at over $325.67 million. The company bought an additional 93660.0 shares recently to bring their total holdings to about 4.03% of the shares outstanding. Vanguard Total Stock Market Index sold 96040.0 shares to see its total holdings shrink to 7.28 million shares valued at over $195.7 million and representing 2.42% of the shares outstanding. Vanguard Small Cap Index Fund sold -0.21 million shares to bring its total holdings to over 6.39 million shares at a value of $171.98 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.13% of the shares outstanding.

Shares of American Homes 4 Rent (NYSE: AMH) opened at $27.53, up $0.05 from a prior closing price of $27.48. However, the script later closed the day at $28.17, up 2.51%. The company’s stock has a 5-day price change of 1.55% and 24.68% over the past three months. AMH shares are trading 4.85% year to date (YTD), with the 12-month market performance up to 10.54% higher. It has a 12-month low price of $17.50 and touched a high of $29.89 over the same period. Currently, 1.46 million shares have been traded, compared to an average intraday trading volume of 2.17 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 3.87%, 7.11%, and 8.77% respectively.

Institutional ownership of American Homes 4 Rent (NYSE: AMH) shares accounts for 88.90% of the company’s 300.81M shares outstanding. Mutual fund holders own 40.48%, while other institutional holders and individual stakeholders account for 50.43% and 30.15% respectively.

It has a market capitalization of $8.14B and a beta (3y monthly) value of 0.60. The stock’s trailing 12-month PE ratio is 91.91, while the earnings-per-share (ttm) stands at $0.30. The company has a debt-to-equity ratio at 0.55. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.72% over the week and 2.48% over the month.

Analysts forecast that American Homes 4 Rent (AMH) will achieve an EPS of $0.03 for the current quarter, $0.04 for the next quarter and $0.2 for 2021. The lowest estimate earnings-per-share for the quarter is $0.01 while analysts give the company a high EPS estimate of $0.04. Comparatively, EPS for the current quarter was $0.08 a year ago. Earnings per share for the fiscal year are expected to increase by 259.10%, and 19.64% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 15 brokerage firm advisors rate American Homes 4 Rent (AMH) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 8 Wall Street analysts polled rate the stock as a buy, while 7 of the 15 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the AMH, a number of firms have released research notes about the stock. Janney stated their Neutral rating for the stock in a research note on June 18, 2020, with the firm’s price target at $29. Raymond James coverage for the American Homes 4 Rent (AMH) stock in a research note released on April 22, 2020 offered a Strong Buy rating with a price target of $28. Goldman was of a view on April 02, 2020 that the stock is Neutral, while Wells Fargo gave the stock Equal Weight rating on February 18, 2020, issuing a price target of $29. Goldman on their part issued Buy rating on November 08, 2019.


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