Invitation Homes Inc. (NYSE: INVH) stock jumped 0.66% on Friday to $37.92 against a previous-day closing price of $37.67. With 2.18 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.55 million shares. During the session, the REIT – Residential company that operates in wider Real Estate sector, reached to the highest price of $37.93 whereas the lowest price it dropped to was $37.44. The 52-week range on INVH shows that it touched its highest point at $45.80 and its lowest point at $33.15 during that stretch. It currently has a 1-year price target of $43.50. With its current market cap of 21.92 billion, INVH has annualized dividend of $0.88 while the current yield stands at 2.32%. Beta for the stock currently stands at 0.89.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of INVH was down-trending over the past week, with a drop of -1.81%, but this was up by 4.23% over a month. Three-month performance dropped to -2.14% while six-month performance fell -10.99%. The stock lost -6.19% in the past year, while it has lost -16.37% so far this year. A look at the trailing 12-month EPS for INVH yields 0.58 with Next year EPS estimates of 0.71. For the next quarter, that number is 0.15. This implies an EPS growth rate of 27.90% for this year and 17.21% for next year. EPS is expected to grow by 17.14% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 30.50%.
Float and Shares Shorts:
At present, 610.33 million INVH shares are outstanding with a float of 609.01 million shares on hand for trading. On Jul 14, 2022, short shares totaled 13.44 million, which was 2.20% higher than short shares on Jun 14, 2022. In addition to Mr. Dallas B. Tanner as the firm’s Co-Founder, Pres, CEO & Director, Mr. Ernest M. Freedman CPA serves as its Exec. VP & CFO.
Through their ownership of 101.86% of INVH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 60.46% of INVH, in contrast to 43.80% held by mutual funds. Shares owned by individuals account for 0.76%. As the largest shareholder in INVH with 13.91% of the stake, The Vanguard Group, Inc. holds 84,887,855 shares worth 84,887,855. A second-largest stockholder of INVH, Cohen & Steers Capital Management, holds 74,757,155 shares, controlling over 12.25% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in INVH, holding 32,932,955 shares or 5.40% stake. With a 4.89% stake in INVH, the Government Pension Fund – Global is the largest stakeholder. A total of 29,846,130 shares are owned by the mutual fund manager. The Vanguard Real Estate Index Fund, which owns about 4.58% of INVH stock, is the second-largest Mutual Fund holder. It holds 27,960,458 shares valued at 994.83 million. Stichting Pensioenfonds ABP holds 3.09% of the stake in INVH, owning 18,861,367 shares worth 671.09 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, INVH reported revenue of $557.30M and operating income of $166.89M. It generated $110.96M net income for the quarter, which came to $347.30M over the last twelve months. The EBITDA in the recently reported quarter was $318.94M and diluted EPS was $0.18. EBITDA for the full year was $1.21B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for INVH since 23 analysts follow the stock currently. There are 15 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 4 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With INVH analysts setting a high price target of $52.00 and a low target of $39.00, the average target price over the next 12 months is $43.48. Based on these targets, INVH could surge 37.13% to reach the target high and rise by 2.85% to reach the target low. Reaching the average price target will result in a growth of 14.66% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. INVH will report FY 2022 earnings on 02/14/2023. Analysts have provided yearly estimates in a range of $0.78 being high and $0.55 being low. For INVH, this leads to a yearly average estimate of $0.64. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Invitation Homes Inc. surprised analysts by $0.03 when it reported $0.18 EPS against a consensus estimate of $0.15. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.20 and the low estimate is $0.13. The average estimate for the next quarter is thus $0.16.
Summary of Insider Activity:
Insiders traded INVH stock several times over the past three months with 8 Buys and 0 Sells. In these transactions, 36,912 shares were bought while 0 shares were sold. The number of buy transactions has increased to 19 while that of sell transactions has risen to 24 over the past year. The total number of shares bought during that period was 533,631 while 230,273 shares were sold.