American Homes 4 Rent (NYSE:AMH) came into the limelight after one of its Directors conducted a Buy trade worth $15.43 million on Friday. American Homes is a real estate investment trust, which engages in acquisitions, maintenance, and leasing of rental homes.
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Shares of this $12.9-billion company rose 1% to close at $37.05 on Friday. Notably, AMH stock has fallen 14.2% since the beginning of 2022.
According to TipRanks’ Insiders Trading tool, American Homes’ Director, Tamara Hughes Gustavson, purchased 422,203 shares of AMH stock for $36.54 per share. The Director’s stake in American Homes is now worth $21 million, representing 6.16% of shares outstanding.
Notably, Director Gustanson conducted one more Informative Buy trade on AMH shares in May 2022. This deal was worth $27.66 million.
Here is a pictorial representation of the trading activities of AMH’s corporate insiders in the past month.
According to TipRanks, the insider confidence signal is presently Neutral on AMH stock. In the last three months, corporate insiders have purchased $15.1 million worth of this insider-friendly stock, as we choose to call in now.
Is AMH a Good Stock to Buy?
In addition to corporate insiders, analysts, financial bloggers, and hedge funds look confident about the prospects of American Homes, which makes it an attractive investment option.
As per TipRanks, the Street is cautious but optimistic about the stock, which has a Moderate Buy consensus rating based on 10 Buys and four Holds. AMH’s average price target of $41.79 represents upside potential of 12.79% from the current level.
While financial bloggers are 87% Bullish on AMH stock versus the sector average of 68%, hedge funds have purchased 179.6 thousand shares of American Homes in the last quarter.
The stakeholders’ optimism in the stock is underpinned by the company’s expectation of a 7.75% to 9.25% increase in core (same-home) revenue growth in 2022. Core funds from operations are forecast to be $1.54-$1.58 per common share and unit.
In August, the company’s CEO, David Singelyn, said, “As our country’s economy heads into uncertain times, the American Homes 4 Rent value proposition remains differentiated by our internal development program and well capitalized, investment grade balance sheet. Combined with the sustained demand backdrop for single-family rentals, we are well-positioned to deliver strong results throughout 2022 and beyond.”
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