Jack Corrigan, a director at American Homes 4 Rent (AMH), has been a recent buyer, picking up 11,000 shares across two transactions over the past two months. The buys increased his position by 30%, and came to a total cost just under $250,000.
Going further back, another company director was a buyer of shares in late 2024, increasing his stake by 6% at a cost of just over $96,000. A few insiders have been sellers over the past few months also.
Overall, American Homes 4 Rent insiders own 7.8% of shares.
The owner and renter of single-family homes is up about 7% over the past year, about in-line with the rest of the stock market.
Revenues have inched higher by 8%, and earnings growth has been flat. AMH sports a solid 23% profit margin, although shares are high in terms of conventional valuation at over 30 times earnings.
Action to take: With mortgage rates still high and transactions down in the housing market, AMH may benefit from potential buyers as long as conditions remain challenging for buyers. Opportunistic investors may like shares on a pullback under $35.
At current prices, AMH also pays a 3.1% dividend.
For traders, shares have been largely range-bound over the past year, and are now at the higher end of their range. The September $35 puts, last trading for about $1.40, could see mid-double-digit returns on a pullback in AMH shares over the summer.
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.