An insider of AMREP Corp. (NYSE:AXR), a company known for its real estate and land development operations, has recently made a notable purchase of the company's stock. James H. Dahl, reported as a ten percent owner of the company, acquired 2,000 common shares at a weighted average price ranging from $29.69 to $29.70, amounting to a total investment of approximately $59,396.
This transaction, which took place on September 27, 2024, increased Dahl's direct holdings to 432,774 shares, as indicated in the latest SEC filing. The filing also provided insights into various indirect holdings, including shares held in IRA accounts and trusts, although these were not part of the recent buying activity.
The purchase by Dahl, who has a significant ownership stake in AMREP Corp., may be seen by investors as a sign of confidence in the company's future prospects. AMREP Corp., with its SIC classification in land subdividers and developers, has a diverse portfolio that includes real estate and construction operations.
Investors and market watchers often pay close attention to insider transactions as they can provide valuable signals about the company's financial health and future performance. The recent acquisition by an insider is a piece of information that could be factored into the investment decisions of current and potential shareholders of AMREP Corp.
As with all insider transactions, the details of the trade are publicly disclosed to ensure transparency and to comply with SEC regulations. The transaction was duly signed by Ivan A. Colao, Attorney-in-Fact for James H. Dahl, affirming the authenticity and approval of the reported insider activity.
In other recent news, AMREP Corporation has made several significant changes. The company has appointed Rosenberg Rich Baker Berman, P.A. as its new independent registered public accounting firm for the fiscal year ending April 30, 2025, following the dismissal of Baker Tilly US, LLP. This change was approved by the Audit Committee of AMREP's Board of Directors and conducted in line with SEC regulations.
In addition to this, AMREP has disclosed compensatory arrangements for its top executives. President and CEO Christopher V. Vitale received a $150,000 cash bonus and 7,200 restricted shares of common stock, while Vice President of Finance and Accounting, Adrienne M. Uleau, was awarded a $55,000 cash bonus and 1,890 restricted shares. These shares are set to vest over the next three years, contingent on continued employment.
AMREP has also made amendments to its Bylaws, described as technical and administrative adjustments. These changes were effective as of July 19, 2024, with full texts of the amended Bylaws filed as exhibits with the SEC. These are recent developments, and further details are expected to be revealed in the company's future SEC filings.
InvestingPro Insights
The recent insider purchase by James H. Dahl aligns with several positive indicators highlighted by InvestingPro. AMREP Corp. (NYSE:AXR) has demonstrated strong financial performance and market positioning, which may have influenced Dahl's decision to increase his stake.
According to InvestingPro data, AMREP Corp. has a market capitalization of $152.35 million and is trading at a P/E ratio of 16.37, suggesting a reasonable valuation relative to its earnings. The company's revenue growth is particularly impressive, with a 24.69% increase over the last twelve months and a substantial 85.55% growth in the most recent quarter.
InvestingPro Tips point out that AXR is trading near its 52-week high, with a strong return of 84.84% over the past year. This performance is complemented by the company's solid financial position, as it holds more cash than debt on its balance sheet. These factors may have contributed to the insider's confidence in purchasing additional shares.
The company's profitability is also noteworthy, with an operating income margin of 17.57% for the last twelve months. This aligns with the InvestingPro Tip indicating that AXR has been profitable over this period, further supporting the positive outlook that may have prompted the insider purchase.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for AMREP Corp., providing a deeper understanding of the company's financial health and market position.
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