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Monday, June 5, 2023

Is American Homes 4 Rent (NYSE: AMH) No Longer A Good Investment?

After Hours

After-hours and pre-market trading may carry slightly higher risks than regular market hours. As issuers often announce important financial information outside regular trading hours, extended-hours trading may result in wider spreads for a particular security. That is because extended-hours trading may result in lower liquidity and higher volatility. After-hours trades for American Homes 4 Rent (AMH) shows that investor sentiment remained broken, with the stock’s consolidated last price falling by -$0.03, or -0.09%, to $35.00. The American Homes 4 Rent has recorded 51,134 volume in the after hours trading session. Most recently, Yahoo Finance reported about the stock as it publicized that AMH Ranks #39 on 2023 Builder 100 List.

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Stocks Info

AMH belongs to the Real Estate sector of the NYSE while operating in the REIT – Residential industry. At the end of the last regular session, the stock closed at $35.03 and fluctuated between $35.17 as its day high and $34.65 as its day low. The current market capitalization of American Homes 4 Rent is $12.66B. A total of 1.81 million shares were traded on the day, compared to an average of 2.45M shares.

Insider Activity

Investors also take into account insider trades in predicting how the stock will perform in the future. During the recent three months, AMH has seen 0 BUY and 7 SELL insider trades, representing the acquisition of 0 and the disposition of 48,162 shares. Over the last 12 months, there were 11 BUYs and 24 SELLs from insiders. Insiders purchased 558,537 shares during that period but sold 101,577.

In the most recent transaction, Vogt-Lowell Sara H. sold 8,789 shares of AMH for 34.88 per share on May 08. After the transaction, the Chief Legal Officer now owns 62,879 company shares. In a previous transaction on May 08, BENHAM DOUGLAS N sold 8,000 shares at 35.00 per share. AMH shares that Director owns now total 16,826.

Among the insiders who sold shares, Lau Christopher disposed of 22,896 shares on Mar 15 at a per-share price of $30.16. This resulted in the Chief Financial Officer holding 60,000 shares of AMH after the transaction. In another insider transaction, Lau Christopher sold 13,281 shares at $30.22 per share on Mar 14. Company shares held by the Chief Financial Officer now total 82,896.

Dividend

Paying dividends generates immediate cash flow for investors and indicates a positive outlook for the company. American Homes 4 Rent pays an annual dividend of $0.88, resulting in a dividend yield of 2.51%, and it has a price to earnings (P/E) ratio of 39.90. AMH’s most recent ex-dividend date was 6/14/2023 when it declared a $0.22 quarterly dividend that was paid in cash on 6/30/2023. Previously, the company paid the dividend on 3/31/2023 with an ex-dividend date of 3/14/2023. The AMH stock dividend was $0.22 per share in cash.

While price targets are rarely accurate, they tend to exert some kind of influence from time to time and are often taken into account by investors. According to analysts who have offered 12-month price targets for AMH in the last 3 months, the mean price target is $35.69 with high estimates of $42.00 and low estimates of $30.00. In terms of 52-week highs and lows, AMH has a high of $38.94 and a low of $28.78.

As of this writing, AMH has an earnings estimate of $0.13 per share for the current quarter. EPS was calculated based on a consensus of 2 estimates, with a high estimate of $0.14 per share and a lower estimate of $0.13. The company reported an EPS of $0.25 in the last quarter, which was 108.30% higher than expectations of $0.12.

Balance Sheet Annually/Quarterly

An organization’s balance sheet depicts the assets and liabilities it has, as well as the amount of equity invested. Investors can measure a company’s prospects by calculating its financial ratios using this information. AMH’s latest balance sheet shows that the firm has $48.20M in Cash & Short Term Investments as of fiscal 2021. There were $3.88B in debt and $693.53M in liabilities at the time. Its Book Value Per Share was $18.96, while its Total Shareholder’s Equity was $6.74B.

Analysts Opinion

There is a slight risk associated with trading before and after the market open. Due to lower liquidity and higher volatility, extended-hours trading may result in wider spreads on particular security due to the release of critical financial information after regular trading hours. Currently, 0 analysts are providing their opinions on the stock. On a scale of 1 to 5, with 1 being Sell and 5 being Buy, the average analyst rating for AMH is Buy with a score of 4.06.

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