Principal Financial Group Inc. Acquires 1,260,717 Shares of American Homes 4 Rent $AMH

Key Points

• Principal Financial Group increased its stake in American Homes 4 Rent by 8.7%, buying 1,260,717 shares to hold 15,810,964 shares (about a 4.26% stake) valued at roughly $507.5 million, and institutional investors collectively own 91.87% of the company.
• American Homes 4 Rent missed quarterly expectations with EPS of $0.33 versus a $0.47 consensus and revenue of $402.9M versus $459.2M expected, while it set FY2026 guidance of $1.890–$1.950 in EPS (analysts expect $1.92).
• The company raised its quarterly dividend to $0.33 (annualized $1.32) for a 4.1% yield, though its dividend payout ratio is a high 111.86%, which may raise sustainability concerns.

Principal Financial Group Inc. raised its holdings in shares of American Homes 4 Rent (NYSE:AMH - Free Report) by 8.7% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 15,810,964 shares of the real estate investment trust's stock after acquiring an additional 1,260,717 shares during the quarter. Principal Financial Group Inc. owned about 4.26% of American Homes 4 Rent worth $507,532,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also bought and sold shares of AMH. Wilmington Savings Fund Society FSB increased its holdings in shares of American Homes 4 Rent by 10,728.6% in the third quarter. Wilmington Savings Fund Society FSB now owns 758 shares of the real estate investment trust's stock worth $25,000 after purchasing an additional 751 shares during the period. True Wealth Design LLC increased its holdings in shares of American Homes 4 Rent by 230.8% in the fourth quarter. True Wealth Design LLC now owns 827 shares of the real estate investment trust's stock worth $27,000 after purchasing an additional 577 shares during the period. Parallel Advisors LLC increased its holdings in shares of American Homes 4 Rent by 84.8% in the third quarter. Parallel Advisors LLC now owns 963 shares of the real estate investment trust's stock worth $32,000 after purchasing an additional 442 shares during the period. V Square Quantitative Management LLC bought a new position in shares of American Homes 4 Rent in the fourth quarter worth $37,000. Finally, CIBC Private Wealth Group LLC increased its holdings in shares of American Homes 4 Rent by 4,356.7% in the third quarter. CIBC Private Wealth Group LLC now owns 1,337 shares of the real estate investment trust's stock worth $44,000 after purchasing an additional 1,307 shares during the period. Institutional investors own 91.87% of the company's stock.

American Homes 4 Rent Stock Up 0.1%

Shares of NYSE:AMH opened at $31.97 on Tuesday. American Homes 4 Rent has a 52-week low of $27.22 and a 52-week high of $39.49. The firm has a fifty day moving average of $29.40 and a 200 day moving average of $30.92. The firm has a market capitalization of $11.63 billion, a PE ratio of 27.09, a price-to-earnings-growth ratio of 4.61 and a beta of 0.82. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.63 and a current ratio of 0.63.

American Homes 4 Rent (NYSE:AMH - Get Free Report) last announced its earnings results on Thursday, February 19th. The real estate investment trust reported $0.33 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.47 by ($0.14). American Homes 4 Rent had a return on equity of 5.93% and a net margin of 24.48%.The company had revenue of $402.93 million during the quarter, compared to analysts' expectations of $459.24 million. During the same quarter last year, the firm posted $0.45 earnings per share. The firm's revenue was up 4.2% on a year-over-year basis. American Homes 4 Rent has set its FY 2026 guidance at 1.890-1.950 EPS. As a group, research analysts anticipate that American Homes 4 Rent will post 1.92 EPS for the current fiscal year.

American Homes 4 Rent Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, March 13th were given a dividend of $0.33 per share. The ex-dividend date was Friday, March 13th. This is a positive change from American Homes 4 Rent's previous quarterly dividend of $0.30. This represents a $1.32 annualized dividend and a yield of 4.1%. American Homes 4 Rent's dividend payout ratio (DPR) is currently 111.86%.

Insider Activity

In other American Homes 4 Rent news, Director Douglas N. Benham purchased 1,200 shares of the business's stock in a transaction on Monday, March 2nd. The stock was acquired at an average cost of $24.20 per share, for a total transaction of $29,040.00. Following the completion of the transaction, the director directly owned 44,717 shares in the company, valued at approximately $1,082,151.40. This represents a 2.76% increase in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director David Goldberg purchased 2,000 shares of the business's stock in a transaction on Tuesday, March 3rd. The shares were acquired at an average price of $29.30 per share, with a total value of $58,600.00. Following the completion of the transaction, the director owned 36,723 shares of the company's stock, valued at approximately $1,075,983.90. This trade represents a 5.76% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders have acquired 6,771 shares of company stock valued at $183,684. Company insiders own 5.70% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. Citigroup decreased their price target on shares of American Homes 4 Rent from $34.50 to $33.50 and set a "neutral" rating on the stock in a report on Monday, March 2nd. Compass Point assumed coverage on shares of American Homes 4 Rent in a report on Tuesday, April 28th. They issued a "buy" rating and a $37.50 price target on the stock. Mizuho decreased their price target on shares of American Homes 4 Rent from $32.00 to $29.00 and set a "neutral" rating on the stock in a report on Friday, March 13th. Keefe, Bruyette & Woods decreased their price target on shares of American Homes 4 Rent from $37.00 to $35.00 and set an "outperform" rating on the stock in a report on Wednesday, February 25th. Finally, UBS Group cut their target price on shares of American Homes 4 Rent from $38.00 to $33.00 and set a "neutral" rating for the company in a research report on Thursday, January 8th. Eight equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $35.39.

About American Homes 4 Rent

American Homes 4 Rent NYSE: AMH is a publicly traded real estate investment trust (REIT) specializing in the acquisition, development and management of single-family rental homes. Since its initial public offering in April 2013, the company has focused on building a large-scale, professionally managed portfolio of homes designed to meet the needs of today's renters. Its business model emphasizes the acquisition of well-located properties coupled with consistent, in-house property management to drive occupancy and long-term value.

As of the most recent reporting, American Homes 4 Rent owns and operates tens of thousands of homes across the United States, with concentration in key Sun Belt and high-growth markets.

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