Tamara Gustavson Is The Independent Trustee of American Homes 4 Rent (NYSE:AMH) And Just Spent US$5.4m On Shares
Those following along with American Homes 4 Rent (NYSE:AMH) will no doubt be intrigued by the recent purchase of shares by Tamara Gustavson, Independent Trustee of the company, who spent a stonking US$5.4m on stock at an average price of US$36.77. While that only increased their holding size by 0.7%, it is still a big swing by our standards.
Check out our latest analysis for American Homes 4 Rent
The Last 12 Months Of Insider Transactions At American Homes 4 Rent
In fact, the recent purchase by Independent Trustee Tamara Gustavson was not their only acquisition of American Homes 4 Rent shares this year. They previously made an even bigger purchase of US$28m worth of shares at a price of US$37.01 per share. That implies that an insider found the current price of US$37.05 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid US$33m for 904.27k shares. On the other hand they divested 25.00k shares, for US$1.1m. In the last twelve months there was more buying than selling by American Homes 4 Rent insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does American Homes 4 Rent Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. American Homes 4 Rent insiders own about US$1.1b worth of shares (which is 7.2% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About American Homes 4 Rent Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about American Homes 4 Rent. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in American Homes 4 Rent.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
