Robert Robotti Executes Sell Order: Offloads $410K In Amrep Stock

Robert Robotti, Board Member at Amrep AXR, executed a substantial insider sell on December 24, according to an SEC filing.

What Happened: After conducting a thorough analysis, Robotti sold 13,000 shares of Amrep. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total transaction value is $410,252.

During Tuesday's morning session, Amrep shares up by 0.84%, currently priced at $30.03.

Unveiling the Story Behind Amrep

Amrep Corp through its subsidiaries is engaged in the Real estate business. Its activities include land sales and lease activities, which involve obtaining approvals and selling both developed and undeveloped lots to homebuilders, commercial users, and others, as well as investments in commercial and investment properties. The Company accounts for land sales, home sales, and other revenues. Its operating segments include Land development and Homebuilding. The firm generates a majority of its revenue from the Land development segment. Geographically, all the activities are carried out throughout the United States.

Financial Insights: Amrep

Revenue Growth: Over the 3 months period, Amrep showcased positive performance, achieving a revenue growth rate of 34.47% as of 31 October, 2024. This reflects 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: With a high gross margin of 41.74%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Amrep's EPS is below the industry average. The company faced challenges with a current EPS of 0.76. This suggests a potential decline in earnings.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.0.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: Amrep's P/E ratio of 12.95 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.53 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 9.15, Amrep presents an attractive value opportunity.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Navigating the Impact of Insider Transactions on Investments

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Exploring Key Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Amrep's Insider Trades.

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