In a recent transaction, an insider of AMREP Corp. (NYSE:AXR), a company specializing in land development, has purchased additional shares, signaling a vote of confidence in the future prospects of the company. The transaction, which took place on September 24, involved the acquisition of 3,000 shares at a price of $30.75 per share, amounting to a total investment of $92,250.
The insider involved in the purchase is reported to be James H. Dahl, who is identified as a ten percent owner of the company. This latest acquisition brings his direct holdings to a total of 430,774 shares. Additionally, the shares are held by James H. Dahl, as clarified in the footnotes of the filing.
It is important to note that the insider's total holdings include indirect ownership through various accounts and trusts. For instance, 229,151 shares are held in IRA accounts, with 204,151 in a ROTH Conversion Account and 25,000 in an IRA Account. Another 94,120 shares are held by the Dahl Family Foundation, Inc., where neither James H. Dahl nor any member of his family has any pecuniary interest. Furthermore, Rainey E. Lancaster, who is associated with Dahl for Section 13(d) of the Exchange Act purposes, holds 173,750 shares.
Investors often look to insider transactions as an indicator of an executive's outlook on the company. A purchase of shares can be seen as a positive sign that those with the most knowledge of the company anticipate growth or stability.
The signatures on the filing were provided by Ivan A. Colao, Attorney-in-Fact for both James H. Dahl and Rainey E. Lancaster, confirming the completion of the transactions on the same day.
AMREP Corp. continues to operate within the real estate and construction sector, and these insider transactions provide a glimpse into the confidence levels of key stakeholders within the company.
In other recent news, AMREP Corporation has undergone notable changes in its fiscal oversight and executive compensation. The company recently appointed Rosenberg Rich Baker Berman, P.A. as its new independent registered public accounting firm for the fiscal year ending April 30, 2025. This followed the dismissal of the previous accounting firm, Baker Tilly US, LLP. The transition was conducted in accordance with regulations set by the Securities and Exchange Commission, and there were no reported disputes or financial discrepancies leading up to this change.
In another development, AMREP Corporation announced compensatory arrangements for top executives. The company awarded President and CEO Christopher V. Vitale a $150,000 cash bonus and 7,200 restricted shares of common stock, while Vice President of Finance and Accounting, Adrienne M. Uleau, received a $55,000 cash bonus and 1,890 restricted shares. Both share allotments are set to vest over a three-year period under specific conditions.
Furthermore, AMREP's Board of Directors recently amended the company's Bylaws, with the changes described as technical and administrative adjustments. These recent developments contribute to the ongoing evolution of AMREP Corporation's operations.
InvestingPro Insights
As insiders increase their stake in AMREP Corp. (NYSE:AXR), the company's financial metrics and market performance provide additional context for investors. AMREP Corp. is currently trading at a low revenue valuation multiple, which could signal that the stock is undervalued relative to its sales. This aligns with the insider's recent purchase, suggesting they may perceive the stock as a good value at the current price.
InvestingPro data shows a robust 24.69% revenue growth in the last twelve months as of Q1 2023, indicating that AMREP Corp. is expanding its financial base. Additionally, the company has demonstrated a significant return over the last week, with a 15.0% price total return, which may reflect increasing investor confidence in the company's short-term prospects.
With a market capitalization of $159.02 million and a P/E ratio of 17.25, AMREP Corp. appears to be maintaining a solid financial position. An InvestingPro Tip highlights that AMREP Corp. holds more cash than debt on its balance sheet, providing the company with financial flexibility and potentially reducing risk for investors.
For those interested in deeper insights, InvestingPro offers an array of additional tips, including analysis on AMREP Corp.'s free cash flow yield and liquidity position, as well as its performance over various timeframes. For instance, the company has not only seen a high return over the last year but also over the last decade, indicating sustained long-term growth. In total, there are 17 additional InvestingPro Tips available for AMREP Corp., which can be accessed for further detailed analysis and investment considerations.
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