A recent filing with the Securities and Exchange Commission has revealed that an insider at AMREP Corp. (NYSE:AXR), a company known for its real estate and construction operations, has made a significant purchase of company shares. The transaction, which took place on April 29, 2024, involved the acquisition of 5,000 shares at a weighted average price range of $21.00 to $21.05, amounting to a total investment of $105,200.
The insider, identified as James H. Dahl, is reported to be a ten percent owner of the company. Following this transaction, Dahl's direct holdings in AMREP Corp. have increased to 366,207 shares. Additionally, Dahl has indirect holdings through IRA accounts and a trust, with 229,151 shares held in IRA accounts and 94,120 shares held by the Dahl Family Foundation, Inc. It should be noted that neither James H. Dahl nor any member of his family have any pecuniary interest in the shares held by the foundation.
Rainey E. Lancaster, who is associated with Dahl through a "group" for the purposes of Section 13(d) of the Exchange Act, holds 173,750 shares directly. The filing did not disclose any sales of AMREP Corp. shares by insiders.
The signatures on the filing were provided by Ivan A. Colao, Attorney-in-Fact for both James H. Dahl and Rainey E. Lancaster, with the date of signing being April 30, 2024.
Investors often monitor insider buying and selling activities as an indicator of a company's internal perspective. The recent purchase by a significant insider at AMREP Corp. may suggest confidence in the company's future prospects.
InvestingPro Insights
Following the notable insider purchase at AMREP Corp. (NYSE:AXR), investors may find the real-time metrics and insights from InvestingPro particularly illuminating. With a market capitalization of $106.28 million, AMREP Corp. appears to be a modestly sized player in the real estate and construction sector. The company's P/E ratio stands at 48.17, which might be considered high, but when adjusted for the last twelve months as of Q3 2024, it drops to a more reasonable 17.46. This suggests that, on an earnings basis, the company may be more attractively valued than initial figures imply.
One of the InvestingPro Tips highlights that AMREP Corp. is trading at a low EBITDA valuation multiple. This could indicate that the company is undervalued compared to its cash earnings potential, which may have been a factor in the insider's decision to increase their stake. Additionally, the company's valuation implies a strong free cash flow yield, an appealing attribute for investors seeking companies with the ability to generate cash.
From a performance standpoint, AMREP Corp. has demonstrated a significant one-year price total return of 48.2%, reflecting a strong market performance. However, the recent price movements show a 1-month total return of -11.36%, which could suggest a potential buying opportunity if the insider's confidence is indicative of the company's future trajectory.
For those interested in a deeper dive into AMREP Corp.'s financials and performance metrics, there are additional InvestingPro Tips available at InvestingPro. With the use of the promotional code PRONEWS24, investors can receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a total of 11 insightful tips for AMREP Corp. that could further inform investment decisions.
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