American Homes 4 Rent (AMH) Downgraded to “Sell” at Zacks Investment Research

Zacks Investment Research lowered shares of American Homes 4 Rent (NYSE:AMH) from a hold rating to a sell rating in a research report sent to investors on Thursday.

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 AMH. Mizuho cut shares of American Homes 4 Rent from a buy rating to a neutral rating and dropped their price objective for the company from $24.00 to $22.00 in a research note on Wednesday, November 14th. JPMorgan Chase & Co. lowered their target price on shares of American Homes 4 Rent from $26.00 to $25.00 and set an overweight rating for the company in a report on Wednesday, November 14th. Morgan Stanley downgraded shares of American Homes 4 Rent from an overweight rating to an equal weight rating and lowered their target price for the company from $22.50 to $21.00 in a report on Thursday, November 15th. BTIG Research set a $25.00 target price on shares of American Homes 4 Rent and gave the company a buy rating in a report on Monday, November 5th. Finally, Goldman Sachs Group upgraded shares of American Homes 4 Rent from a neutral rating to a buy rating and set a $24.00 target price for the company in a report on Monday, November 26th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and six have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and an average target price of $23.75.

Shares of AMH traded up $0.30 during trading hours on Thursday, reaching $20.78. The company’s stock had a trading volume of 3,281,053 shares, compared to its average volume of 2,302,857. The company has a market capitalization of $5.95 billion, a price-to-earnings ratio of 20.37, a P/E/G ratio of 1.35 and a beta of 0.59. American Homes 4 Rent has a 1-year low of $18.39 and a 1-year high of $23.34. 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 (NYSE:AMH) last posted its quarterly earnings data on Thursday, November 1st. The real estate investment trust reported $0.05 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.27 by ($0.22). The business had revenue of $280.10 million for the quarter, compared to the consensus estimate of $270.24 million. American Homes 4 Rent had a net margin of 10.70% and a return on equity of 1.90%. American Homes 4 Rent’s quarterly revenue was up 13.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.25 EPS. Equities research analysts expect that American Homes 4 Rent will post 1.07 earnings per share for the current fiscal year.

The company also recently disclosed a dividend, which was paid on Monday, January 7th. Investors of record on Wednesday, January 2nd were issued a $0.05 dividend. The ex-dividend date was Monday, December 31st. American Homes 4 Rent’s dividend payout ratio is currently 19.61%.

In related news, Director Douglas N. Benham bought 3,000 shares of American Homes 4 Rent stock in a transaction on Thursday, December 20th. The shares were purchased at an average price of $21.00 per share, for a total transaction of $63,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Tamara Hughes Gustavson bought 355,998 shares of American Homes 4 Rent stock in a transaction on Tuesday, November 13th. The shares were bought at an average price of $20.48 per share, for a total transaction of $7,290,839.04. Following the acquisition, the director now owns 16,869,998 shares of the company’s stock, valued at approximately $345,497,559.04. The disclosure for this purchase can be found here. Insiders purchased 2,382,479 shares of company stock worth $47,867,855 in the last 90 days. 26.52% of the stock is currently owned by corporate insiders.

Institutional investors and hedge funds have recently modified their holdings of the business. State of Alaska Department of Revenue lifted its stake in American Homes 4 Rent by 14.7% in the 3rd quarter. State of Alaska Department of Revenue now owns 110,222 shares of the real estate investment trust’s stock valued at $2,412,000 after acquiring an additional 14,155 shares in the last quarter. Northern Trust Corp lifted its stake in American Homes 4 Rent by 4.1% during the second quarter. Northern Trust Corp now owns 2,678,265 shares of the real estate investment trust’s stock worth $59,405,000 after purchasing an additional 106,297 shares during the last quarter. Vanguard Group Inc lifted its stake in American Homes 4 Rent by 3.4% during the third quarter. Vanguard Group Inc now owns 37,392,589 shares of the real estate investment trust’s stock worth $818,524,000 after purchasing an additional 1,212,586 shares during the last quarter. BlackRock Inc. lifted its stake in American Homes 4 Rent by 1.8% during the third quarter. BlackRock Inc. now owns 19,553,235 shares of the real estate investment trust’s stock worth $428,020,000 after purchasing an additional 340,190 shares during the last quarter. Finally, Macquarie Group Ltd. lifted its stake in American Homes 4 Rent by 17.3% during the third quarter. Macquarie Group Ltd. now owns 373,555 shares of the real estate investment trust’s stock worth $8,177,000 after purchasing an additional 55,100 shares during the last quarter. Hedge funds and other institutional investors own 88.02% of the company’s stock.

About American Homes 4 Rent

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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