An insider at Amrep Corp. (NYSE:AXR), a land development company, has recently purchased a significant number of shares, according to the latest SEC filings. James H. Dahl, identified as a more than ten percent owner, bought 4,621 shares at a price of $20.60 per share, totaling approximately $95,192.
The transaction, which took place on May 7, 2024, increased Dahl's direct holdings in the company to 380,828 shares. Additional disclosures in the filing revealed that Dahl also has indirect holdings through various accounts and entities. Specifically, 229,151 shares are held in two IRA accounts, with 204,151 shares in a ROTH Conversion Account and 25,000 in an IRA Account. Another 94,120 shares are held by the Dahl Family Foundation, Inc., where neither Dahl nor any family member has a pecuniary interest. Lastly, 173,750 shares are held by Rainey E. Lancaster, who is part of a group with Dahl for the purposes of Section 13(d) of the Exchange Act.
The purchase by Dahl demonstrates a tangible commitment to the company and could be seen as a sign of confidence in its future prospects. Amrep Corp., with its primary operations in land development, has a varied portfolio of properties and development projects.
Investors often monitor insider transactions as they can provide insights into the company's health and the sentiment of those who are closely involved with its operations. The recent acquisition by an insider at Amrep Corp. could potentially be of interest to current and prospective shareholders alike.
InvestingPro Insights
Amidst the insider trading activity at Amrep Corp. (NYSE:AXR), current and potential investors might be keen to understand the company's financial standing. According to InvestingPro data, Amrep Corp. has a market capitalization of $107.33 million, which can offer insight into the size and market position of the company in the land development sector. The company's P/E ratio stands at 48.98, suggesting that investors are willing to pay a higher price for earnings, which could be interpreted as a sign of optimism about future growth.
Two pertinent InvestingPro Tips highlight that Amrep Corp. is trading at a low EBIT valuation multiple and a low EBITDA valuation multiple. These metrics indicate that the company may be undervalued based on its earnings before interest and taxes, and earnings before interest, taxes, depreciation, and amortization, respectively. Additionally, Amrep Corp. holds more cash than debt on its balance sheet, which is a positive sign of financial stability and may reassure investors of the company's ability to weather economic downturns.
For those interested in a deeper analysis, there are 11 additional InvestingPro Tips available for Amrep Corp. These include insights on the company's free cash flow yield, revenue valuation multiple, and its performance over various time frames. Access to these tips can be found at https://www.investing.com/pro/AXR, and readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, further enriching their investment strategy.
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