American Homes 4 Rent (AMH) Cut to Sell at Zacks Investment Research

Zacks Investment Research cut shares of American Homes 4 Rent (NYSE:AMH) from a hold rating to a sell rating in a report issued on Wednesday morning.

According to Zacks, “American Homes 4 Rent is an internally managed real estate investment trust. It is focused on acquiring, renovating, leasing, and operating single-family homes as rental properties. It rents residential properties primarily in Arizona, California, Florida, Georgia, and Nevada. American Homes 4 Rent is based in Malibu, California. “

Several other analysts have also recently issued reports on the company. Zelman & Associates cut American Homes 4 Rent from a buy rating to a hold rating in a research report on Monday, July 30th. Mizuho cut American Homes 4 Rent from a buy rating to a neutral rating and cut their target price for the stock from $24.00 to $22.00 in a research report on Wednesday, November 14th. Wells Fargo & Co increased their target price on American Homes 4 Rent from $22.00 to $24.00 and gave the stock a market perform rating in a research report on Tuesday, August 28th. JPMorgan Chase & Co. cut their target price on American Homes 4 Rent from $26.00 to $25.00 and set an overweight rating for the company in a research report on Wednesday, November 14th. Finally, BTIG Research set a $25.00 target price on American Homes 4 Rent and gave the stock a buy rating in a research report on Monday, November 5th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and seven have given a buy rating to the company. The company has a consensus rating of Hold and an average target price of $23.81.

NYSE:AMH opened at $19.84 on Wednesday. The company has a debt-to-equity ratio of 0.45, a current ratio of 0.99 and a quick ratio of 0.99. American Homes 4 Rent has a 12-month low of $18.39 and a 12-month high of $23.34. The stock has a market cap of $5.88 billion, a P/E ratio of 19.45, a price-to-earnings-growth ratio of 1.47 and a beta of 0.62.

American Homes 4 Rent (NYSE:AMH) last released its earnings results on Thursday, November 1st. The real estate investment trust reported $0.05 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.27 by ($0.22). American Homes 4 Rent had a return on equity of 1.90% and a net margin of 10.70%. The business had revenue of $280.10 million for the quarter, compared to analysts’ expectations of $270.24 million. During the same quarter in the prior year, the business posted $0.25 EPS. The business’s revenue for the quarter was up 13.5% compared to the same quarter last year. As a group, research analysts anticipate that American Homes 4 Rent will post 1.07 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Monday, December 31st. Investors of record on Friday, December 14th will be paid a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a yield of 1.01%. The ex-dividend date of this dividend is Thursday, December 13th. American Homes 4 Rent’s payout ratio is presently 19.61%.

In other news, Director Douglas N. Benham purchased 2,000 shares of the company’s stock in a transaction that occurred on Wednesday, October 10th. The stock was bought at an average cost of $23.73 per share, with a total value of $47,460.00. Following the completion of the purchase, the director now owns 8,000 shares in the company, valued at $189,840. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Tamara Hughes Gustavson purchased 217,000 shares of the company’s stock in a transaction that occurred on Wednesday, September 5th. The shares were purchased at an average cost of $22.93 per share, with a total value of $4,975,810.00. The disclosure for this purchase can be found here. Over the last three months, insiders have purchased 2,219,079 shares of company stock valued at $45,323,593. 27.82% of the stock is owned by corporate insiders.

A number of institutional investors have recently made changes to their positions in AMH. Citadel Advisors LLC boosted its stake in American Homes 4 Rent by 1,181.0% during the second quarter. Citadel Advisors LLC now owns 2,380,096 shares of the real estate investment trust’s stock valued at $52,790,000 after buying an additional 2,194,301 shares during the last quarter. Security Capital Research & Management Inc. boosted its stake in American Homes 4 Rent by 95.5% during the second quarter. Security Capital Research & Management Inc. now owns 3,339,970 shares of the real estate investment trust’s stock valued at $74,081,000 after buying an additional 1,631,925 shares during the last quarter. Capital Growth Management LP bought a new position in American Homes 4 Rent during the third quarter valued at approximately $32,616,000. Bank of America Corp DE boosted its stake in American Homes 4 Rent by 146.0% during the second quarter. Bank of America Corp DE now owns 2,504,080 shares of the real estate investment trust’s stock valued at $55,540,000 after buying an additional 1,486,363 shares during the last quarter. Finally, American Century Companies Inc. bought a new position in American Homes 4 Rent during the second quarter valued at approximately $32,196,000. 88.20% of the stock is owned by institutional investors.

American Homes 4 Rent Company Profile

American Homes 4 Rent (NYSE: AMH) is a leader in the single-family home rental industry and "American Homes 4 Rent" is fast becoming a nationally recognized brand for rental homes, known for high quality, good value and tenant satisfaction. We are an internally managed Maryland real estate investment trust, or REIT, focused on acquiring, renovating, leasing, and operating attractive, single-family homes as rental properties.

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