On September 14, 2023, Bryan Smith, the COO of American Homes 4 Rent (AMH, Financial), sold 8,107 shares of the company. This move is part of a trend for the insider, who over the past year has sold a total of 125,000 shares and purchased none.
Bryan Smith is a key figure in the American Homes 4 Rent company. As the COO, he plays a crucial role in the company's operations and strategic decisions. His insider trading activities, therefore, provide valuable insights into the company's current status and future prospects.
American Homes 4 Rent is a leading provider of high-quality single-family rental homes in the United States. The company acquires, renovates, leases, maintains, and manages homes in select submarkets throughout 22 states. With a market cap of $13.22 billion, it is a significant player in the real estate industry.
The insider transaction history for American Homes 4 Rent shows a clear trend. Over the past year, there have been no insider buys, while there have been 11 insider sells. This could indicate that insiders believe the company's stock is currently overvalued.
On the day of the insider's recent sell, shares of American Homes 4 Rent were trading for $36.38 apiece. This gives the stock a price-earnings ratio of 37.28, which is higher than the industry median of 17.29 but lower than the company’s historical median price-earnings ratio.
With a price of $36.38 and a GuruFocus Value of $35.40, American Homes 4 Rent has a price-to-GF-Value ratio of 1.03. This suggests that the stock is fairly valued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent sell of American Homes 4 Rent shares, along with the overall trend of insider sells over the past year, could suggest that insiders believe the stock is currently fairly valued or even slightly overvalued. However, investors should also consider other factors, such as the company's financial health and market conditions, before making investment decisions.
