America First Multifamily Investors: 3 Different Insiders Have Purchased Shares This Month

Dec.15.13 | About: America First (ATAX)

In this article, I will feature one mortgage investment company that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increased their holdings by more than 10%.

America First Multifamily Investors, L.P. (NASDAQ:ATAX) acquires, holds, sells, and deals in a portfolio of federally tax-exempt mortgage revenue bonds that have been issued to provide construction and/or permanent financing of multifamily residential apartments.

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Insider buying during the last 30 days

Here is a table of America First Multifamily Investors' insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Purchased Public Offering Current Ownership Increase In Shares
Timothy Francis CFO Dec 10 475 No 975 shares +95.0%
Patrick Jung Director Dec 2-6 2,200 No 7,200 shares +44.0%
George Krauss Director Dec 2 40,000 Yes 173,697 shares +29.9%
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There have been 42,675 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of America First Multifamily Investors' insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
December 2013 42,675 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 14,000 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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There have been 56,675 shares purchased and there have been zero shares sold by insiders this year. The month of December has seen the most insider buying.

Financials

America First Multifamily Investors reported the third-quarter financial results on November 7 with the following highlights:

Revenue $8.9 million
Net income $3.7 million
Cash $11.9 million
Debt $278.4 million
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On December 2, America First Multifamily Investors closed a $48.6 million financing.

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(Source: Earnings presentation)

Competition

America First Multifamily Investors' competitors include Invesco Mortgage Capital (NYSE:IVR), Annaly Capital Management (NYSE:NLY), and Capstead Mortgage (NYSE:CMO). Here is a table comparing these companies.

Company ATAX IVR NLY CMO
Market Cap: 272.89M 2.03B 9.50B 1.16B
Employees: N/A N/A 147 13
Qtrly Rev Growth (yoy): 0.47 -0.93 -0.26 -0.34
Revenue: 30.98M 367.14M 3.81B 137.45M
Gross Margin: 0.70 1.00 1.00 1.00
Operating Margin: 0.35 0.87 0.95 0.90
Net Income: 13.12M 303.67M 3.33B 84.91M
EPS: 0.39 2.29 3.45 0.89
P/E: 16.22 6.55 2.91 13.56
PEG (5 yr expected): N/A 1.29 2.54 1.07
P/S: 8.81 5.50 2.48 8.34
Short Float: 0.05% 2.36% 2.12% 4.66%
Dividend Yield: 7.84% 13.40% 14.04% 10.36%
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America First Multifamily Investors has the lowest short float among these four companies.

Here is a table of these competitors' insider-trading activities this year.

Company Insider buying / shares Insider selling / shares
IVR 28,600 0
NLY 481,224 0
CMO 70,400 75,115
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Only America First Multifamily Investors has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying America First Multifamily Investors and there have not been any insiders selling America First Multifamily Investors during the last 30 days. All three of these insiders increased their holdings by more than 10%. America First Multifamily Investors has an insider ownership of 0.10%.

America First Multifamily Investors has a book value of $3.65 per share and the stock has a dividend yield of 7.84%. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

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(Source: Earnings presentation)

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in ATAX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.