James Dahl, a major holder at Amrep (AXR), recently added 1,800 shares. The buy increased his stake by less than 1%, and came to a total cost of $53,906.
Dahl has made over 20 separate buys over the past year, and more going back to 2022 and 2023. Some buys have been in the $250,000 range, while others have been in the $5,000 range. One company VP has been a moderate seller of her shares this year.
Overall, Amrep insiders own 44.9% of shares.
The real estate developer and homebuilder is up 73% over the past year, returning more than double the return of the S&P 500.
Even with that move higher, Amrep is still trading at 17 times earnings, a slight discount to the overall market. That’s thanks to an 85% jump in revenues and a 202% rise in earnings.
With the housing market potentially improving in the months ahead, shares are likely to keep trending higher.
Action to take: Shares have recently pulled back from overextended levels, and look on track to resume trading higher over the coming months. Momentum investors may like shares here. Currently, Amrep does not pay a dividend.
The company’s market cap is too small for options trading, but homeowners in general are set to trade higher. Traders could consider call options on other homebuilders, such as Lennar, which saw some bullish analyst interest earlier this week.
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.
