Douglas Benham, a director at
American Homes 4 Rent (AMH), recently bought 3,949 shares across two transactions in the past few weeks. The buys have increased his stake by 6%, coming at a total cost of $96,673.
Benham was also a buyer earlier in the year, increasing his position by 21% back in May at a cost of about $280,000. Another company director was also a buyer in May for over $227,000 in shares.
Overall, American Homes 4 Rent insiders own 7.7% of shares.
The owner and renter of single-family homes is up 7% over the past year. Rents have started to peak nationwide, and home prices have likewise come down a bit from their peak.
That’s created a headwind for shares, as seen by total earnings, which are off 0.4% in the past year, even with a 5.5% increase in revenues. However, with interest rates coming down, home prices may start to show more signs of appreciation.
Action to take: Structured as a REIT, American Homes 4 Rent pays out the bulk of its earnings as income, with a current yield of about 2.8%. Investors looking to play a rebound in housing may like shares from here.
For traders, shares are trending higher, albeit at a slow pace. The March 2025 $40 calls, last trading for about $0.95, could see mid-double-digit returns from a further trend higher into the spring.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
