In a recent move, an insider at AMREP Corp. (NYSE:AXR), a company known for its land development projects, has made a significant purchase of the company's common shares. The transaction, which took place on April 3rd, involved the acquisition of 3,000 shares at a price of $22.20 each, amounting to a total investment of $66,600.
This purchase was disclosed in a Form 4 filing with the Securities and Exchange Commission, which provides transparency into the trading activities of the company's insiders. According to the filing, the shares are directly held by James H. Dahl, who is a major shareholder owning more than ten percent of the company's stock.
The filing also revealed that certain shares are held indirectly through various entities. For instance, 229,151 shares are held in IRA accounts, and another 94,120 shares are held by the Dahl Family Foundation, Inc. However, it's important to note that neither James H. Dahl nor any member of his family have a pecuniary interest in the shares held by the Dahl Family Foundation, Inc. Additionally, 173,750 shares are held by Rainey E. Lancaster, who is associated with James H. Dahl for the purposes of Section 13(d) of the Exchange Act.
The insider's decision to increase their stake in AMREP Corp. may be seen as a sign of confidence in the company's future prospects. Investors often watch insider buying and selling to get insights into how those with the most knowledge of the company view its valuation and prospects.
AMREP Corp. has a diverse portfolio of operations, including its primary business of land development and other real estate ventures. The company's stock performance and business developments are closely monitored by investors interested in the real estate and construction sector.
As always, investors are encouraged to consider the context of such transactions and to conduct their own research when evaluating the implications for their investment strategies.
InvestingPro Insights
In light of the insider buying activity at AMREP Corp. (NYSE:AXR), investors may find additional insights by looking at some key financial metrics and expert tips from InvestingPro. The company's market capitalization currently stands at $113.25 million, and the stock is trading at a high earnings multiple with a P/E ratio of 53.3. However, when adjusted for the last twelve months as of Q3 2024, the P/E ratio appears more attractive at 18.36.
One notable InvestingPro Tip for AMREP Corp. is that the company holds more cash than debt on its balance sheet, which can be a positive sign of financial health and stability. Additionally, the company is trading at a low EBIT valuation multiple, suggesting that its earnings before interest and taxes are undervalued compared to the market.
From a performance standpoint, AMREP Corp. has had a significant price uptick over the last six months, with a total return of 30.45%. This aligns with another InvestingPro Tip highlighting the strong return over the last five years, which can be indicative of the company's growth trajectory and potential for future gains.
For investors seeking more in-depth analysis and additional InvestingPro Tips, there are 10 more tips available for AMREP Corp. at InvestingPro. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a comprehensive view of the financial landscape and investment opportunities.
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