American Homes 4 Rent (NYSE:AMH) has received a consensus recommendation of “Moderate Buy” from analysts, reflecting a positive outlook for the real estate investment trust. According to MarketBeat, among the fifteen analysts covering the stock, seven have issued a “hold” rating while eight have recommended a “buy.”
The average price target set by analysts for American Homes 4 Rent is $38.14 over the next twelve months. Recent reports highlight a range of revisions in price targets from notable financial institutions. On November 13, Morgan Stanley lowered its target for AMH from $41.00 to $40.00, maintaining an “overweight” rating. Similarly, Scotiabank decreased its price target from $41.00 to $35.00, while assigning a “sector perform” rating as of November 10.
In a further analysis, Mizuho reduced its price target from $36.00 to $34.00, maintaining an “outperform” rating. Additionally, Goldman Sachs adjusted its rating from “buy” to “neutral” and lowered its price objective from $43.00 to $37.00 in a report released on September 17.
Institutional Investment Trends
Institutional investors have been actively adjusting their stakes in American Homes 4 Rent. Notably, Wilmington Savings Fund Society FSB significantly increased its position by 10,728.6% in the third quarter, acquiring a total of 758 shares valued at approximately $25,000. Meanwhile, Hantz Financial Services Inc. raised its stake by 922.2% in the second quarter, now holding 828 shares valued at about $30,000 after acquiring an additional 747 shares.
Other institutional movements include AlphaQuest LLC, which purchased a new position valued at roughly $33,000, and Parallel Advisors LLC, which grew its stake by 84.8% during the third quarter, now owning 963 shares worth about $32,000. Overall, institutional investors hold 91.87% of American Homes 4 Rent’s stock.
Recent Financial Performance
On October 29, 2023, American Homes 4 Rent announced its quarterly earnings, reporting an earnings per share (EPS) of $0.47, slightly exceeding analysts’ expectations of $0.46. The company recorded revenue of $478.46 million, surpassing the consensus estimate of $475.75 million. This marked a 7.5% increase in revenue compared to the same quarter last year, where the company had an EPS of $0.44.
For the fiscal year 2025, American Homes 4 Rent has set an EPS guidance between $1.86 and $1.88. Analysts project an EPS of $1.85 for the current year.
The company also recently declared a quarterly dividend of $0.30 per share, expected to be paid on December 31, 2023. Investors on record by December 15 will receive this dividend, which equates to an annualized dividend of $1.20 and a yield of 3.9%. The current dividend payout ratio stands at 101.69%.
American Homes 4 Rent, founded by Bradley Wayne Hughes, Sr. on October 19, 2012, is headquartered in Las Vegas, NV. The company specializes in the acquisition, renovation, leasing, and management of single-family homes for rental purposes, positioning itself as a key player in the real estate investment trust sector.