Morgan Stanley Has Lowered Expectations for American Homes 4 Rent (NYSE:AMH) Stock Price

Key Points

• Morgan Stanley lowered American Homes 4 Rent’s price target from $38.50 to $38.00 but maintained an “overweight” rating, implying approximately 12.7% upside from the stock’s $33.72 price.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of $36.78; other firms recently raised ratings or targets.
• American Homes 4 Rent exceeded quarterly earnings expectations, reporting $0.31 in EPS versus $0.18 forecast and $470.1 million in revenue, up 2.8% year over year. Institutional investors own approximately 91.87% of the company’s shares.

American Homes 4 Rent (NYSE:AMH - Get Free Report) had its target price reduced by equities research analysts at Morgan Stanley from $38.50 to $38.00 in a research note issued on Wednesday,Benzinga reports. The brokerage presently has an "overweight" rating on the real estate investment trust's stock. Morgan Stanley's price objective indicates a potential upside of 12.69% from the company's current price.

AMH has been the subject of several other research reports. Scotiabank boosted their price objective on American Homes 4 Rent from $32.00 to $33.00 and gave the stock a "sector perform" rating in a research report on Thursday, June 18th. Jefferies Financial Group raised American Homes 4 Rent to a "strong-buy" rating in a report on Wednesday, July 22nd. Citigroup reaffirmed a "market outperform" rating on shares of American Homes 4 Rent in a research report on Wednesday, August 5th. Raymond James Financial upgraded American Homes 4 Rent from a "market perform" rating to an "outperform" rating and set a $35.00 price target for the company in a report on Monday, May 18th. Finally, Wall Street Zen raised American Homes 4 Rent from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $36.78.

American Homes 4 Rent Stock Down 0.4%

American Homes 4 Rent stock traded down $0.15 during mid-day trading on Wednesday, hitting $33.72. 329,588 shares of the company's stock were exchanged, compared to its average volume of 3,411,856. American Homes 4 Rent has a 1-year low of $27.22 and a 1-year high of $35.85. The stock has a 50 day moving average of $33.41 and a two-hundred day moving average of $31.47. 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 stock has a market cap of $12.16 billion, a P/E ratio of 26.76, a P/E/G ratio of 6.17 and a beta of 0.79.

American Homes 4 Rent (NYSE:AMH - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $0.31 earnings per share for the quarter, topping analysts' consensus estimates of $0.18 by $0.13. The company had revenue of $470.10 million during the quarter, compared to analysts' expectations of $466.51 million. American Homes 4 Rent had a return on equity of 6.25% and a net margin of 25.53%.The business's quarterly revenue was up 2.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.47 earnings per share. American Homes 4 Rent has set its FY 2026 guidance at 1.930-1.970 EPS. As a group, analysts anticipate that American Homes 4 Rent will post 1.88 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Jack E. Corrigan bought 2,041 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The shares were acquired at an average cost of $23.53 per share, with a total value of $48,024.73. Following the completion of the transaction, the director directly owned 17,000 shares in the company, valued at $400,010. This represents a 13.64% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 5.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On American Homes 4 Rent

Institutional investors have recently bought and sold shares of the business. Westpac Banking Corp raised its stake in shares of American Homes 4 Rent by 12.2% in the 2nd quarter. Westpac Banking Corp now owns 142,898 shares of the real estate investment trust's stock valued at $4,790,000 after buying an additional 15,485 shares in the last quarter. EP Wealth Advisors LLC bought a new position in shares of American Homes 4 Rent during the 2nd quarter worth about $311,000. Ieq Capital LLC boosted its position in shares of American Homes 4 Rent by 1,551.9% during the 2nd quarter. Ieq Capital LLC now owns 136,844 shares of the real estate investment trust's stock valued at $4,587,000 after acquiring an additional 128,560 shares in the last quarter. Allworth Financial LP boosted its position in shares of American Homes 4 Rent by 35.7% during the 2nd quarter. Allworth Financial LP now owns 32,101 shares of the real estate investment trust's stock valued at $1,076,000 after acquiring an additional 8,448 shares in the last quarter. Finally, Vise Technologies Inc. acquired a new stake in shares of American Homes 4 Rent during the 2nd quarter valued at about $439,000. 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 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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