Scott Eisen Executes Sell Order: Offloads $369K In Invitation Homes Stock

Scott Eisen, EVP at Invitation Homes INVH, disclosed an insider sell on December 11, according to a recent SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Eisen sold 11,000 shares of Invitation Homes. The total transaction value is $369,710.

Monitoring the market, Invitation Homes's shares down by 0.0% at $33.29 during Thursday's morning.

Discovering Invitation Homes: A Closer Look

Invitation Homes owns a portfolio of nearly 85,000 single-family rental homes. The company focuses on owning homes in the starter and move-up segments of the housing market with an average sale price around $350,000 and generally less than 1,800 square feet. The portfolio is spread across 16 target markets that feature high employment and household formation growth with almost 70% of the portfolio in the Western U.S. and Florida; 15 of the 16 markets featuring average rents lower than homeownership costs.

Invitation Homes: Delving into Financials

Revenue Growth: Invitation Homes's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 6.9%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Real Estate sector.

Interpreting Earnings Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 58.11%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Invitation Homes's EPS is below the industry average. The company faced challenges with a current EPS of 0.16. This suggests a potential decline in earnings.

Debt Management: With a below-average debt-to-equity ratio of 0.91, Invitation Homes adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 46.24 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 7.91 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Invitation Homes's EV/EBITDA ratio at 18.81 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Transaction Codes To Focus On

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Invitation Homes's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.