American Homes 4 Rent [NYSE: AMH] loss -2.18% on the last trading session, reaching $37.25 price per share at the time. The company report on May 21, 2021 that American Homes 4 Rent Announces Pricing of Upsized Public Offering of Common Shares.
American Homes 4 Rent (NYSE: AMH) (the “Company”) announced that it has priced an underwritten public offering of 16,300,000 of its Class A common shares of beneficial interest, $0.01 par value per share (“Class A common shares”), of which 5,500,000 shares were offered directly by the Company, and 10,800,000 shares were offered, at the request of the Company, by the forward purchasers (as defined below) or their respective affiliates in connection with the forward sale agreements described below. The underwriters have been granted a 30-day option to purchase an aggregate of up to an additional 2,445,000 Class A common shares. The offering is subject to customary closing conditions and is expected to close on or about May 25, 2021.
In connection with the offering of the Class A common shares, the Company expects to enter into a forward sale agreement with each of JPMorgan Chase Bank, National Association and Bank of America, N.A. or their respective affiliates (who are referred to in such capacity individually as a “forward purchaser” and collectively, the “forward purchasers”), with respect to 10,800,000 Class A common shares covered by the offering. The forward purchasers or their respective affiliates are expected to borrow from third parties and sell to the underwriters 10,800,000 Class A common shares in connection with the forward sale agreements (or an aggregate of 13,245,000 shares if the underwriters exercise their option to purchase additional shares in full).
American Homes 4 Rent represents 316.98 million in outstanding shares, while the company has a total market value of $12.08 billion with the latest information. AMH stock price has been found in the range of $37.08 to $38.08.
If compared to the average trading volume of 1.74M shares, AMH reached a trading volume of 8051093 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about American Homes 4 Rent [AMH]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AMH shares is $38.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AMH stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
RBC Capital Mkts have made an estimate for American Homes 4 Rent shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on March 31, 2021. The new note on the price target was released on February 16, 2021, representing the official price target for American Homes 4 Rent stock.
The Average True Range (ATR) for American Homes 4 Rent is set at 0.69, with the Price to Sales ratio for AMH stock in the period of the last 12 months amounting to 10.02. The Price to Book ratio for the last quarter was 2.03, with the Price to Cash per share for the same quarter was set at 0.23. Price to Free Cash Flow for AMH in the course of the last twelve months was 30.45.
Trading performance analysis for AMH stock
American Homes 4 Rent [AMH] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.16. With this latest performance, AMH shares gained by 4.69% in over the last four-week period, additionally plugging by 30.61% over the last 6 months – not to mention a rise of 54.69% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for AMH stock in for the last two-week period is set at 58.06, with the RSI for the last a single of trading hit 54.47, and the three-weeks RSI is set at 60.12 for American Homes 4 Rent [AMH]. The present Moving Average for the last 50 days of trading for this stock 35.05, while it was recorded at 37.57 for the last single week of trading, and 30.93 for the last 200 days.
American Homes 4 Rent [AMH]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and American Homes 4 Rent [AMH] shares currently have an operating margin of +20.08 and a Gross Margin at +25.32. American Homes 4 Rent’s Net Margin is presently recorded at +11.85.
Return on Total Capital for AMH is now 2.62, given the latest momentum, and Return on Invested Capital for the company is 1.67. Return on Equity for this stock inclined to 2.52, with Return on Assets sitting at 1.50. When it comes to the capital structure of this company, American Homes 4 Rent [AMH] has a Total Debt to Total Equity ratio set at 49.00. Additionally, AMH Total Debt to Total Capital is recorded at 32.89, with Total Debt to Total Assets ending up at 29.57. Long-Term Debt to Equity for the company is recorded at 48.61, with the Long-Term Debt to Total Capital now at 32.62.
Reflecting on the efficiency of the workforce at the company, American Homes 4 Rent [AMH] managed to generate an average of $96,860 per employee. Receivables Turnover for the company is 16.48 with a Total Asset Turnover recorded at a value of 0.13.
American Homes 4 Rent [AMH]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, American Homes 4 Rent posted 0.05/share EPS, while the average EPS was predicted by analysts to be reported at 0.03/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 66.70%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for AMH.
An analysis of insider ownership at American Homes 4 Rent [AMH]
There are presently around $10,377 million, or 87.20% of AMH stock, in the hands of institutional investors. The top three institutional holders of AMH stocks are: VANGUARD GROUP INC with ownership of 39,836,235, which is approximately 2.908% of the company’s market cap and around 2.90% of the total institutional ownership; BLACKROCK INC., holding 21,371,002 shares of the stock with an approximate value of $796.07 million in AMH stocks shares; and JPMORGAN CHASE & CO, currently with $766.89 million in AMH stock with ownership of nearly -9.499% of the company’s market capitalization.
Positions in American Homes 4 Rent stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 171 institutional holders increased their position in American Homes 4 Rent [NYSE:AMH] by around 19,172,006 shares. Additionally, 150 investors decreased positions by around 19,335,389 shares, while 34 investors held positions by with 240,074,087 shares. The mentioned changes placed institutional holdings at 278,581,482 shares, according to the latest SEC report filing. AMH stock had 34 new institutional investments in for a total of 2,769,445 shares, while 37 institutional investors sold positions of 7,030,091 shares during the same period.