Revealing a significant insider sell on June 16, Dallas Tanner, Chief Executive Officer at Invitation Homes INVH, as per the latest SEC filing.
What Happened: After conducting a thorough analysis, Tanner sold 148,749 shares of Invitation Homes. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total transaction value is $4,970,001.
The latest update on Tuesday morning shows Invitation Homes shares down by 0.69%, trading at $33.15.
All You Need to Know About Invitation Homes
Invitation Homes owns a portfolio of over 85,000 single-family rental homes. The company focuses on owning homes in the starter and move-up segments of the housing market with an average sale price around $350,000 and generally less than 1,800 square feet. The portfolio is spread across 16 target markets that feature high employment and household formation growth with almost 70% of the portfolio in the Western U.S. and Florida; 15 of the 16 markets featuring average rents lower than homeownership costs.
Invitation Homes’s Economic Impact: An Analysis
Positive Revenue Trend: Examining Invitation Homes’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.4% as of 31 March, 2025, showcasing a substantial increase in 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: The company sets a benchmark with a high gross margin of 59.35%, reflecting superior cost management and profitability compared to its peers.
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Earnings per Share (EPS): Invitation Homes’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.27.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.83.
Evaluating Valuation:
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Price to Earnings (P/E) Ratio: Invitation Homes’s P/E ratio of 42.79 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 7.74 as compared to the industry average, the stock might be considered overvalued based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 18.24, Invitation Homes presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
Market Capitalization Analysis: With a profound presence, the company’s market capitalization is above industry averages. This reflects substantial size and strong market recognition.
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Delving Into the Significance of Insider Transactions
Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
Understanding Crucial Transaction Codes
Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes 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 Invitation Homes’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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