American Homes 4 Rent (NYSE:AMH) Shares Down 7.4% Following Analyst Downgrade

American Homes 4 Rent (NYSE:AMH)’s stock price traded down 7.4% on Wednesday after Mizuho downgraded the stock from an outperform rating to a neutral rating. Mizuho now has a $32.00 price target on the stock, down from their previous price target of $33.00. American Homes 4 Rent traded as low as $28.85 and last traded at $29.9930. 6,461,807 shares traded hands during trading, an increase of 63% from the average session volume of 3,954,738 shares. The stock had previously closed at $32.40.

A number of other equities analysts have also commented on the stock. Barclays decreased their price objective on shares of American Homes 4 Rent from $39.00 to $34.00 and set an “equal weight” rating for the company in a research note on Tuesday, November 25th. Wells Fargo & Company decreased their target price on American Homes 4 Rent from $38.00 to $37.00 and set an “overweight” rating for the company in a research report on Tuesday, November 25th. Weiss Ratings reiterated a “hold (c)” rating on shares of American Homes 4 Rent in a report on Wednesday, October 8th. The Goldman Sachs Group set a $37.00 price target on American Homes 4 Rent in a research report on Monday, December 15th. Finally, Scotiabank decreased their price objective on American Homes 4 Rent from $41.00 to $35.00 and set a “sector perform” rating for the company in a research report on Monday, November 10th. Eight equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, American Homes 4 Rent currently has a consensus rating of “Hold” and an average price target of $37.63.

Insiders Place Their Bets

In other news, Director Douglas N. Benham purchased 1,000 shares of the business’s stock in a transaction dated Wednesday, November 19th. The stock was bought at an average cost of $31.65 per share, with a total value of $31,650.00. Following the purchase, the director directly owned 7,991 shares of the company’s stock, valued at approximately $252,915.15. This trade represents a 14.30% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Jack E. Corrigan purchased 5,000 shares of American Homes 4 Rent stock in a transaction dated Tuesday, December 9th. The shares were purchased at an average price of $22.96 per share, with a total value of $114,800.00. Following the completion of the acquisition, the director owned 17,300 shares in the company, valued at $397,208. The trade was a 40.65% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 6.32% of the stock is currently owned by company insiders.

Key American Homes 4 Rent News

Here are the key news stories impacting American Homes 4 Rent this week:

• Positive Sentiment: BMO Capital Markets reaffirmed a “market perform” rating and set a $37 price target, signaling a sizable upside view from that shop which may limit further downside. BMO reaffirms Market Perform, $37 PT
• Neutral Sentiment: Mizuho reconfirmed a “neutral” rating with a $32 target in a separate note (a reiteration that keeps expectations muted). Mizuho reaffirms neutral, $32 PT
• Negative Sentiment: Mizuho also lowered its stance from “outperform” to “neutral” in another update, reflecting increased caution and reducing analyst conviction. Mizuho downgrade to neutral
• Negative Sentiment: UBS cut its price target from $38 to $33 and kept a “neutral” rating, narrowing upside and signaling more conservative fair‑value assumptions. UBS lowers PT to $33
• Negative Sentiment: Policy headlines: President Trump floated banning large institutional investors from buying single‑family homes, and coverage suggests the proposal triggered a sectorwide sell‑off and raised AMH’s perceived regulatory risk; analysts and markets are now repricing that risk even though some argue REITs could be exempt. Wall Street Isn’t The Housing Problem How Trump’s Proposed Institutional Home Buying Ban Could Impact AMH

Institutional Trading of American Homes 4 Rent

Institutional investors have recently added to or reduced their stakes in the business. AE Wealth Management LLC increased its stake in shares of American Homes 4 Rent by 7.3% during the 3rd quarter. AE Wealth Management LLC now owns 6,149 shares of the real estate investment trust’s stock worth $204,000 after purchasing an additional 418 shares during the last quarter. Assetmark Inc. boosted its holdings in American Homes 4 Rent by 21.6% in the third quarter. Assetmark Inc. now owns 2,360 shares of the real estate investment trust’s stock worth $78,000 after purchasing an additional 420 shares in the last quarter. Parallel Advisors LLC increased its position in American Homes 4 Rent by 84.8% during the third quarter. Parallel Advisors LLC now owns 963 shares of the real estate investment trust’s stock worth $32,000 after buying an additional 442 shares during the last quarter. Thrivent Financial for Lutherans increased its position in American Homes 4 Rent by 0.6% during the second quarter. Thrivent Financial for Lutherans now owns 74,825 shares of the real estate investment trust’s stock worth $2,699,000 after buying an additional 447 shares during the last quarter. Finally, Crossmark Global Holdings Inc. raised its holdings in American Homes 4 Rent by 2.3% during the third quarter. Crossmark Global Holdings Inc. now owns 21,178 shares of the real estate investment trust’s stock valued at $704,000 after buying an additional 469 shares in the last quarter. 91.87% of the stock is currently owned by institutional investors and hedge funds.

American Homes 4 Rent Stock Down 1.9%

The company has a market cap of $11.51 billion, a price-to-earnings ratio of 26.29, a PEG ratio of 2.77 and a beta of 0.79. The business has a 50-day simple moving average of $31.70 and a two-hundred day simple moving average of $33.52. The company has a quick ratio of 0.41, a current ratio of 0.41 and a debt-to-equity ratio of 0.62.

American Homes 4 Rent (NYSE:AMH) last issued its quarterly earnings data on Wednesday, October 29th. The real estate investment trust reported $0.47 EPS for the quarter, beating analysts’ consensus estimates of $0.46 by $0.01. American Homes 4 Rent had a return on equity of 5.90% and a net margin of 24.70%.The business had revenue of $478.46 million for the quarter, compared to analyst estimates of $475.75 million. During the same quarter in the prior year, the firm posted $0.44 EPS. The firm’s revenue for the quarter was up 7.5% on a year-over-year basis. American Homes 4 Rent has set its FY 2025 guidance at 1.860-1.88 EPS. As a group, equities analysts forecast that American Homes 4 Rent will post 1.85 earnings per share for the current fiscal year.

American Homes 4 Rent Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 15th were issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 3.9%. The ex-dividend date of this dividend was Monday, December 15th. American Homes 4 Rent’s dividend payout ratio is currently 101.69%.

American Homes 4 Rent Company Profile

American Homes 4 Rent (NYSE: AMH) is a publicly traded real estate investment trust (REIT) specializing in the acquisition, development and management of single-family rental homes. Since its initial public offering in April 2013, the company has focused on building a large-scale, professionally managed portfolio of homes designed to meet the needs of today’s renters. Its business model emphasizes the acquisition of well-located properties coupled with consistent, in-house property management to drive occupancy and long-term value.

As of the most recent reporting, American Homes 4 Rent owns and operates tens of thousands of homes across the United States, with concentration in key Sun Belt and high-growth markets.