An insider of AMREP Corp. (NYSE:AXR), a company known for its real estate and land development operations, has made a significant purchase of company stock, according to a recent SEC filing. The transaction involved the acquisition of 10,000 shares at a price of $20.95 per share, amounting to a total investment of $209,500.
The purchase was made by James H. Dahl, who is a notable ten percent owner of the company. Following this transaction, Dahl's direct holdings in AMREP Corp. have increased to a total of 376,207 shares. Additionally, the filing disclosed indirect holdings through IRA accounts and a trust, with 229,151 shares in IRA accounts and 94,120 shares in a trust. Rainey E. Lancaster, also a member of the same group as Dahl for Section 13(d) of the Exchange Act, holds 173,750 shares directly.
These transactions underscore the confidence insiders have in the company's future prospects. Investors often look to insider buying as a positive signal that those with the most knowledge of the company anticipate growth or a potential increase in share value.
AMREP Corp. has a diverse portfolio within the real estate sector, including land development and homebuilding operations. The company's latest actions, as reflected in the SEC filings, provide valuable information for investors monitoring insider activity as part of their investment strategy.
InvestingPro Insights
As AMREP Corp. (NYSE:AXR) sees notable insider activity with the recent stock purchase by James H. Dahl, investors are keen to understand the company's financial health and future prospects. According to InvestingPro, AMREP Corp. stands out with a strong balance sheet, as it holds more cash than debt. This is a reassuring sign for investors, as it suggests financial stability and the ability to invest in future growth opportunities.
The company's valuation metrics also present an interesting picture. AMREP Corp. is trading at a low EBIT valuation multiple and a low EBITDA valuation multiple, which may indicate that the stock is undervalued compared to its earnings potential. This could be a factor in the insider's decision to increase their stake in the company, as they may perceive the stock to be a good value at the current price levels.
Looking at the real-time data, AMREP Corp. has a market cap of $107.96M and a P/E ratio of 49.57, which suggests investors are paying a higher price for earnings at present. However, the adjusted P/E ratio for the last twelve months as of Q3 2024 is 17.34, painting a different picture of the stock's valuation over a longer period. The company has experienced a revenue decline of 25.15% over the last twelve months as of Q3 2024, but a quarterly revenue growth of 39.18% in Q1 2024, which could signal a turnaround or seasonal fluctuation in its business operations.
For those interested in further insights, there are 10 additional InvestingPro Tips available on the InvestingPro platform. These tips could provide a deeper analysis and help investors make more informed decisions. To access these insights and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.