Executives at Amrep Corp. (NYSE:AXR), a company specializing in land development, have recently increased their stakes in the company through the purchase of shares valued at over $55,000. The transactions, filed with the SEC, reveal that the insiders bought shares at prices ranging from $20.98 to $21.8164.
The SEC filing indicates that on April 16, 2024, an insider purchased 142 shares at $20.98 each. Subsequently, on April 18, 2024, a larger transaction occurred with the purchase of 2,400 shares at a weighted average price of $21.8164 per share. These shares were acquired in multiple transactions at prices between $21.45 and $22.24, reflecting a dynamic market price on the purchase date.
Following these transactions, the reporting insiders now hold a significant number of shares in Amrep Corp. The filings show that one insider's direct holdings have reached 361,207 shares. Additionally, the filings reveal indirect holdings through IRA accounts and a family foundation, indicating a broader investment in the company by the insiders.
The activity of insiders is often watched closely by investors as it can provide insights into the company's performance and the confidence that executives have in the future prospects of their firm. In the case of Amrep Corp., the recent purchases by insiders could signal a positive outlook on the company's value and its operations in the real estate and land development sector.
Investors and market watchers will be keeping an eye on future filings for any further transactions that might indicate ongoing insider confidence in Amrep Corp.'s business strategy and growth potential.
InvestingPro Insights
As Amrep Corp. (NYSE:AXR) sees increased insider share purchases, a closer look at the company's financial metrics from InvestingPro provides additional context for investors. These transactions suggest a belief in the company's stability and potential for growth, which is supported by the fact that Amrep Corp. holds more cash than debt on its balance sheet, a reassuring sign for investors looking for a financially sound company.
Moreover, Amrep Corp. is trading at a low revenue valuation multiple, with a market capitalization of $113.2 million and revenue for the last twelve months as of Q3 2024 at $44.53 million. This might indicate that the company's stock is undervalued in relation to its revenue, possibly presenting an attractive entry point for investors. InvestingPro Tips also highlight that the company is trading at a low EBIT valuation multiple, further underscoring the potential for growth in the company's valuation.
Despite the recent decline in revenue growth, with a -25.15% change in the last twelve months as of Q3 2024, the company's stock has experienced a significant price uptick of 29.67% over the last six months. This could be reflective of the market's optimism about the company's future performance, aligning with the confidence shown by the insiders' recent share purchases.
For investors interested in further insights and tips on Amrep Corp., InvestingPro offers additional analysis and metrics. There are 11 more InvestingPro Tips available for AXR, which can be accessed by visiting the company's page on the InvestingPro platform. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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