Should Investors Be Selling American Homes 4 Rent (NYSE:AMH) Stock Following Today’s JP Morgan Downgrade?


American Homes 4 Rent (NYSE:AMH) Receives a Downgrade

JP Morgan cut their rating for shares of American Homes 4 Rent (NYSE:AMH) from “Overweight” to “Neutral” in an analyst research report that was distributed to Clients on 17 December.

From a total of 7 analysts covering American Homes 4 Rent (NYSE:AMH) stock, 7 rate it a ”Buy”, 0 a “Sell”, and 3 a ”Hold”. This means that 70% of the ratings are positive. The highest target price is $22 while the lowest target price is $17. The mean of all analyst targets is $19.14 with a 17.00% above today’s ($16.24) stock price. American Homes 4 Rent was the topic of 3 analyst reports since August 10, 2015 according to the firm StockzIntelligence Inc. Zacks upgraded shares on August 18 to “Sell” rating.

Approximately 431,696 shares of stock traded hands. American Homes 4 Rent (NYSE:AMH) has declined 0.24% since May 14, 2015 and is downtrending. It has outperformed by 2.02% the S&P500.

The overall sentiment of institutions has increased to 1.41 in Q2 2015. Its up 0.24, from 1.17 in 2015Q2. The ratio improved, as 18 institutions have sold all the shares of American Homes 4 Rent that they owned while 51 funds have taken shares off the table. 31 funds have purchased shares for the first time while 66 added to their positions. These institutions now hold 158.26 million shares or 4.51% less than the 165.73 million shares they owned in 2015Q2.

The Fund Starwood Real Estate Securities Llc currently is holding shares equating to 4.21% of its total portfolio in American Homes 4 Rent representing a total of 484,008 shares. Another fund,Tourbillon Capital Partners L.P., is holding a total of 6.55 million shares equating to 2.76% of their holdings. Additionally, Richmond Hill Investments Llc has a 305,042 share stake in American Homes 4 Rent which represents 2.18% of their total portfolio. The Fund, Clearbridge Llc, based out of Maryland, has also built up a stake in the stock, which represents a total of 2.16% of their total portfolio. Finally Permal Asset Management Llc, a fund which is based in the state of New York reported a total holdings of 85,700 shares.

American Homes 4 Rent is an internally managed real estate investment trust . The company has a market cap of $3.41 billion. The Firm focuses on acquiring, renovating, leasing and operating single-family homes as rental properties. It currently has negative earnings. The Firm has an integrated operating platform that consists of personnel engaged in property management, acquisitions, construction, marketing, leasing, financial and administrative functions.

According to Zacks Investment Research, “American Homes 4 Rent is an internally managed real estate investment trust. It is focused on acquiring, renovating, leasing, and operating single-family homes as rental properties. It rents residential properties primarily in Arizona, California, Florida, Georgia, and Nevada. American Homes 4 Rent is based in Malibu, California.”