Morgan Stanley Lowers American Homes 4 Rent (NYSE:AMH) Price Target to $39.00

Key Points

• Morgan Stanley cut its price target on American Homes 4 Rent to $39.00 (from $40) while keeping an overweight rating, implying about a 32.2% upside from the prior close.
• Overall analyst sentiment is mixed: the consensus rating is Hold with an average price target of $35.72, and several firms (Goldman, KBW, Barclays, BMO) have recently trimmed targets.
• The REIT missed its latest quarter (EPS $0.33 vs. $0.47 expected; revenue $402.9M vs. $459.2M), shares traded down to $29.50, and insiders have been buying shares recently, totaling 9,771 shares in the last 90 days.

American Homes 4 Rent (NYSE:AMH - Get Free Report) had its price target cut by investment analysts at Morgan Stanley from $40.00 to $39.00 in a note issued to investors on Monday,Benzinga reports. The firm currently has an "overweight" rating on the real estate investment trust's stock. Morgan Stanley's price objective suggests a potential upside of 32.20% from the stock's previous close.

A number of other equities research analysts also recently issued reports on AMH. The Goldman Sachs Group set a $37.00 price target on shares of American Homes 4 Rent in a research report on Monday, December 15th. Raymond James Financial restated a "market perform" rating on shares of American Homes 4 Rent in a report on Friday, February 27th. Keefe, Bruyette & Woods dropped their price objective on American Homes 4 Rent from $37.00 to $35.00 and set an "outperform" rating for the company in a research note on Wednesday, February 25th. BMO Capital Markets reaffirmed a "market perform" rating and set a $37.00 price objective on shares of American Homes 4 Rent in a report on Friday, January 9th. Finally, Barclays decreased their target price on American Homes 4 Rent from $33.00 to $31.00 and set an "equal weight" rating on the stock in a research report on Friday. Seven analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat.com, American Homes 4 Rent currently has an average rating of "Hold" and a consensus price target of $35.72.

American Homes 4 Rent Price Performance

Shares of NYSE:AMH traded down $0.40 on Monday, reaching $29.50. 304,575 shares of the company were exchanged, compared to its average volume of 4,793,597. The company has a 50-day moving average of $31.15 and a 200-day moving average of $32.17. The company has a current ratio of 0.63, a quick ratio of 0.63 and a debt-to-equity ratio of 0.66. The firm has a market cap of $10.73 billion, a price-to-earnings ratio of 25.00, a price-to-earnings-growth ratio of 4.27 and a beta of 0.80. American Homes 4 Rent has a 1-year low of $28.84 and a 1-year high of $39.49.

American Homes 4 Rent (NYSE:AMH - Get Free Report) last announced its quarterly earnings data on Thursday, February 19th. The real estate investment trust reported $0.33 EPS for the quarter, missing the consensus estimate of $0.47 by ($0.14). The company had revenue of $402.93 million during the quarter, compared to analyst estimates of $459.24 million. American Homes 4 Rent had a net margin of 24.48% and a return on equity of 5.93%. The firm's revenue for the quarter was up 4.2% on a year-over-year basis. During the same quarter last year, the business earned $0.45 EPS. American Homes 4 Rent has set its FY 2026 guidance at 1.890-1.950 EPS. Equities analysts forecast that American Homes 4 Rent will post 1.85 earnings per share for the current fiscal year.

Insider Transactions at American Homes 4 Rent

In related news, Director Douglas N. Benham bought 1,571 shares of American Homes 4 Rent stock in a transaction that occurred on Wednesday, February 25th. The shares were purchased at an average price of $24.00 per share, with a total value of $37,704.00. Following the purchase, the director owned 43,517 shares in the company, valued at $1,044,408. This represents a 3.75% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director David Goldberg bought 2,000 shares of the stock in a transaction on Tuesday, February 24th. The shares were bought at an average price of $29.17 per share, for a total transaction of $58,340.00. Following the acquisition, the director owned 34,723 shares in the company, valued at $1,012,869.91. The trade was a 6.11% increase in their position. The SEC filing for this purchase provides additional information. Insiders acquired a total of 9,771 shares of company stock valued at $239,884 in the last ninety days. Corporate insiders own 6.01% of the company's stock.

Hedge Funds Weigh In On American Homes 4 Rent

Institutional investors have recently made changes to their positions in the stock. Thrivent Financial for Lutherans boosted its stake in shares of American Homes 4 Rent by 67.6% during the 3rd quarter. Thrivent Financial for Lutherans now owns 125,412 shares of the real estate investment trust's stock worth $4,170,000 after purchasing an additional 50,587 shares during the last quarter. 12th Street Asset Management Company LLC raised its position in shares of American Homes 4 Rent by 64.3% in the third quarter. 12th Street Asset Management Company LLC now owns 158,081 shares of the real estate investment trust's stock valued at $5,256,000 after buying an additional 61,838 shares during the last quarter. Retirement Systems of Alabama lifted its stake in shares of American Homes 4 Rent by 13.3% during the third quarter. Retirement Systems of Alabama now owns 910,363 shares of the real estate investment trust's stock valued at $30,270,000 after buying an additional 106,550 shares during the period. Sumitomo Mitsui Trust Group Inc. lifted its stake in shares of American Homes 4 Rent by 24.0% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,506,317 shares of the real estate investment trust's stock valued at $83,335,000 after buying an additional 485,401 shares during the period. Finally, Pacer Advisors Inc. boosted its position in American Homes 4 Rent by 608,877.8% during the third quarter. Pacer Advisors Inc. now owns 54,808 shares of the real estate investment trust's stock worth $1,822,000 after acquiring an additional 54,799 shares during the last quarter. 91.87% of the stock is owned by institutional investors and hedge funds.

American Homes 4 Rent Company Profile

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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