Royal Bank Of Canada Forecasts Strong Price Appreciation for American Homes 4 Rent (NYSE:AMH) Stock

Key Points

• Royal Bank of Canada raised its price target for American Homes 4 Rent from $35 to $36 and maintained an “outperform” rating, implying 10.16% upside from the prior close.
• Analyst views are broadly positive: MarketBeat reports a “Moderate Buy” consensus and a $36 average price target, though several firms have cut targets or maintained neutral ratings.
• The REIT reported quarterly EPS of $0.50, beating the $0.18 consensus, while revenue of $498.07 million also topped estimates and grew 4.1% year over year.

American Homes 4 Rent (NYSE:AMH - Get Free Report) had its target price increased by stock analysts at Royal Bank Of Canada from $35.00 to $36.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage currently has an "outperform" rating on the real estate investment trust's stock. Royal Bank Of Canada's price target would indicate a potential upside of 10.16% from the stock's previous close.

A number of other equities research analysts have also weighed in on AMH. Scotiabank reduced their price objective on shares of American Homes 4 Rent from $33.00 to $31.00 and set a "sector perform" rating on the stock in a report on Thursday, September 17th. UBS Group lowered their target price on shares of American Homes 4 Rent from $35.00 to $32.00 and set a "neutral" rating for the company in a research note on Monday, October 12th. Zelman & Associates raised American Homes 4 Rent from an "underperform" rating to a "neutral" rating in a report on Friday. JPMorgan Chase & Co. increased their target price on American Homes 4 Rent from $35.00 to $38.00 and gave the company a "neutral" rating in a report on Wednesday, August 19th. Finally, Wells Fargo & Company cut their price target on American Homes 4 Rent from $38.00 to $34.00 and set an "overweight" rating on the stock in a research note on Monday, October 19th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, American Homes 4 Rent has a consensus rating of "Moderate Buy" and a consensus price target of $36.00.

American Homes 4 Rent Stock Down 1.2%

AMH traded down $0.41 on Friday, hitting $32.68. 612,473 shares of the company were exchanged, compared to its average volume of 3,202,767. American Homes 4 Rent has a twelve month low of $27.22 and a twelve month high of $35.07. The company has a market cap of $11.78 billion, a price-to-earnings ratio of 26.81, a price-to-earnings-growth ratio of 4.98 and a beta of 0.76. The company has a current ratio of 0.59, a quick ratio of 0.59 and a debt-to-equity ratio of 0.69. The firm has a 50-day moving average price of $31.48 and a two-hundred day moving average price of $31.62.

American Homes 4 Rent (NYSE:AMH - Get Free Report) last posted its quarterly earnings results on Wednesday, November 4th. The real estate investment trust reported $0.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.18 by $0.32. The company had revenue of $498.07 million for the quarter, compared to analyst estimates of $488.73 million. American Homes 4 Rent had a return on equity of 6.03% and a net margin of 24.17%. American Homes 4 Rent's revenue for the quarter was up 4.1% compared to the same quarter last year. During the same quarter last year, the company earned $0.47 EPS. On average, equities analysts predict that American Homes 4 Rent will post 1.91 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Jack Corrigan bought 8,000 shares of the firm's stock in a transaction on Friday, September 11th. The shares were bought at an average cost of $21.49 per share, for a total transaction of $171,920.00. Following the transaction, the director owned 25,000 shares of the company's stock, valued at approximately $537,250. This trade represents a 47.06% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Insiders acquired a total of 15,000 shares of company stock valued at $328,040 over the last three months. 5.70% of the stock is currently owned by company insiders.

Institutional Trading of American Homes 4 Rent

Several hedge funds and other institutional investors have recently made changes to their positions in AMH. Readystate Asset Management LP acquired a new stake in American Homes 4 Rent in the 2nd quarter valued at $1,936,000. Public Employees Retirement System of Ohio purchased a new position in American Homes 4 Rent in the second quarter valued at about $16,697,000. Bank of America Corp DE lifted its stake in shares of American Homes 4 Rent by 69.0% during the first quarter. Bank of America Corp DE now owns 1,609,254 shares of the real estate investment trust's stock worth $44,930,000 after purchasing an additional 656,937 shares in the last quarter. Hsbc Holdings PLC lifted its stake in shares of American Homes 4 Rent by 10.7% during the second quarter. Hsbc Holdings PLC now owns 830,070 shares of the real estate investment trust's stock worth $27,881,000 after purchasing an additional 80,256 shares in the last quarter. Finally, First Trust Advisors LP lifted its stake in shares of American Homes 4 Rent by 11.1% during the first quarter. First Trust Advisors LP now owns 1,313,880 shares of the real estate investment trust's stock worth $36,684,000 after purchasing an additional 131,373 shares in the last quarter. Institutional investors and hedge funds own 91.87% of the company's stock.

About American Homes 4 Rent

American Homes 4 Rent NYSE: AMH is a real estate investment trust that owns, operates and develops single-family rental homes in the United States. The company provides professionally managed rental housing to individuals and families, with properties generally located in suburban communities and designed for long-term occupancy.

The company's activities include acquiring, constructing, renovating, leasing and maintaining single-family homes. Its portfolio includes detached houses with features such as private yards, garages and modern appliances.

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