Sara VogtLowell, CAO & CLO at American Homes 4 Rent AMH, reported a large exercise of company stock options on May 7, according to a new SEC filing.
What Happened: The latest Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission uncovered VogtLowell, CAO & CLO at American Homes 4 Rent, exercising stock options for 42,500 shares of AMH. The total transaction was valued at $753,650.
American Homes 4 Rent shares are currently trading down by 4.36%, with a current price of $37.1 as of Thursday morning. This brings the total value of VogtLowell’s 42,500 shares to $753,650.
About American Homes 4 Rent
American Homes 4 Rent is a real estate investment trust focused on acquiring, operating, and leasing single-family homes as rental properties throughout the United States. The company’s real estate portfolio is largely comprised of single-family properties in urban markets in the Southern and Midwestern regions of the U.S. American Homes 4 Rent’s land holdings also represent a sizable percentage of its total assets in terms of value. The company derives the vast majority of its income in the form of rental revenue from single-family properties through short-term or annual leases. The firm’s geographical markets include Dallas, Texas; Indianapolis, Indiana; Atlanta, Georgia; and Charlotte, North Carolina in terms of the number of properties in each.
Financial Insights: American Homes 4 Rent
Revenue Growth: American Homes 4 Rent’s remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 8.43%. This signifies a substantial increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Real Estate sector.
Holistic Profitability Examination:
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Gross Margin: With a high gross margin of 56.08%, the company demonstrates effective cost control and strong profitability relative to its peers.
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Earnings per Share (EPS): American Homes 4 Rent’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 0.3.
Debt Management: American Homes 4 Rent’s debt-to-equity ratio is below the industry average at 0.69, reflecting a lower dependency on debt financing and a more conservative financial approach.
Exploring Valuation Metrics Landscape:
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Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 35.92, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
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Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 8.11 suggests overvaluation in the eyes of investors, considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): American Homes 4 Rent’s EV/EBITDA ratio at 17.06 suggests potential undervaluation, falling below industry averages.
Market Capitalization Analysis: Above industry benchmarks, the company’s market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
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Illuminating the Importance of Insider Transactions
Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
A Deep Dive into Insider Transaction Codes
Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of American Homes 4 Rent’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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