American Homes 4 Rent (NYSE:AMH) director Jack E. Corrigan has made a substantial investment in the company's Series G Perpetual Preferred Shares, according to a recent filing. The transaction, which took place on May 6, 2024, involved the purchase of shares totaling $227,776.
The acquisition was executed through a series of transactions at prices ranging from $22.65 to $22.81 per share. This range represents a weighted average price, with Corrigan committing to provide full information regarding the number of shares purchased at each specific price upon request by the issuer, any security holder, or the Securities Exchange Commission.
The detailed report discloses that Corrigan purchased 4,000 shares at an average price of $22.81, 500 shares at $22.736, 2,000 shares at $22.776, 3,000 shares at $22.758, and smaller lots ranging from 100 to 300 shares at prices slightly varying around the $22.70 mark. The filing also notes that some of the shares were acquired indirectly, such as those held in an IRA, by a spouse's IRA, for a child, and for grandchildren through custodial accounts.
These transactions have increased Corrigan's holdings significantly, with the post-transaction amounts indicating a strengthened position in American Homes 4 Rent. The preferred shares acquired are known for providing investors with a fixed dividend, making them an attractive option for income-focused portfolios.
Investors often look to the buying and selling activities of company insiders as an indicator of confidence in the firm's future prospects. Corrigan's purchase aligns with such a perspective, potentially signaling his bullish stance on the company's value and its dividend-paying real estate investments.
American Homes 4 Rent, a real estate investment trust, has been a notable player in the residential housing market, providing single-family home rentals across various regions in the United States. As a director of the company, Corrigan's recent stock purchase could be interpreted as a strong vote of confidence in the ongoing strategy and financial health of the firm.
InvestingPro Insights
Amid the news of Director Jack E. Corrigan's substantial investment in American Homes 4 Rent's (NYSE:AMH) preferred shares, the company's financial health and market performance remain a key interest for investors. With a market capitalization of $15.11 billion, American Homes 4 Rent stands out in the residential housing market. The company's P/E ratio, as of the last twelve months leading up to Q1 2024, stands at a high 69.54, indicating that the market has high expectations for the company's future earnings. This is further echoed by the company's price being close to its 52-week high, at 95.39% of the peak value.
An InvestingPro Tip highlights that American Homes 4 Rent has raised its dividend for three consecutive years, showcasing a commitment to returning value to shareholders. This aligns with Corrigan's purchase of dividend-yielding preferred shares, suggesting a focus on income generation. Additionally, the company is trading at a high EBIT valuation multiple, with an EBITDA of $820.27 million in the last twelve months leading up to Q1 2024, reflecting a solid operational performance with an EBITDA growth of 8.59%.
For investors interested in delving deeper into the company's performance and potential, there are 6 additional InvestingPro Tips available, offering insights that could guide investment decisions. To explore these tips and gain a comprehensive understanding of American Homes 4 Rent's financial landscape, visit InvestingPro. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing your investment research with valuable data and analytics.
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