In a recent transaction, an insider at Amrep Corp. (NYSE:AXR) has increased their stake in the company. The transaction involved the purchase of shares at prices ranging from $20.65 to $21.25, reflecting a weighted average price of $20.9534 per share. This buying activity resulted in a total investment of approximately $92,194.
The insider involved in the purchase is identified as James H. Dahl, who is reported to be a ten percent owner of the company. The shares acquired are held directly by James H. Dahl, as indicated in the associated footnotes of the filing. This move has brought his total direct ownership to 388,428 shares of Amrep Corp. The filing also disclosed holdings in IRA accounts and a trust, with 229,151 shares in IRA accounts and 94,120 shares in a trust, though these holdings were not part of the recent purchase transaction.
For investors following insider activity, such transactions can be of interest as they may signal confidence in the company's future prospects from those with an intimate understanding of the business. Amrep Corp., a real estate and construction company with a history of land development, has its shares publicly traded and is subject to the reporting requirements of the Securities and Exchange Commission.
The transaction was executed on May 15, 2024, and reported in a Form 4 document filed with the SEC on May 16, 2024. The Form 4 filing is a requirement for company insiders to report changes in their company holdings and is publicly available for investors' scrutiny.
InvestingPro Insights
Following the insider purchase by James H. Dahl at Amrep Corp. (NYSE:AXR), several metrics from InvestingPro offer a snapshot of the company's financial health and market valuation. The company's Market Cap stands at $110.58M, with a notable Price/Earnings (P/E) Ratio of 49.52, which adjusts to a more modest 17.58 when looking at the last twelve months as of Q3 2024. Despite a revenue decline of 25.15% during the same period, the quarterly revenue growth shows a substantial increase of 39.18%. This dichotomy of revenue trends could be indicative of the company's potential turnaround or specific market conditions affecting its performance.
From the InvestingPro Tips, it's noteworthy that Amrep Corp. holds more cash than debt, which is a strong indicator of financial stability. Additionally, the company is trading at a low EBITDA valuation multiple, suggesting that it might be undervalued based on its earnings before interest, taxes, depreciation, and amortization. These insights could be particularly relevant for investors considering the insider's recent stock purchase as a signal of confidence in the company's valuation and future prospects.
For those looking to delve deeper into Amrep Corp.'s financials and market performance, InvestingPro offers a comprehensive list of tips, including 11 additional insights available at: https://www.investing.com/pro/AXR. Interested investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further valuable information to guide their investment decisions.
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