Stock of the Day

January 2, 2020

Invitation Homes (INVH)

$31.90
-$0.35 (-1.1%)
Market Cap: $19.75B

About Invitation Homes

Invitation Homes, an S&P 500 company, is the nation's premier single-family home leasing and management company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, Together with you, we make a house a home, reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.

Invitation Homes Bull Case

Here are some ways that investors could benefit from investing in Invitation Homes Inc.:

  • Invitation Homes Inc. recently increased its quarterly dividend from $0.28 to $0.29 per share, reflecting a commitment to returning value to shareholders. This translates to an annualized dividend of $1.16, providing a yield of 3.73%, which can be attractive for income-focused investors.
  • The stock is currently trading at $30.54, which may present a buying opportunity for investors looking for potential growth, especially considering the average target price from analysts is $37.47.
  • Institutional ownership is high at 96.79%, indicating strong confidence from large investors, which can be a positive signal for retail investors regarding the company's stability and growth prospects.
  • Recent analyst ratings show a mix of hold and buy recommendations, with several firms reaffirming their positive outlook, suggesting that there is potential for price appreciation in the near term.
  • Invitation Homes Inc. operates in the single-family home leasing market, which has seen increased demand due to changing lifestyle preferences, positioning the company well for future growth.

Invitation Homes Bear Case

Investors should be bearish about investing in Invitation Homes Inc. for these reasons:

  • The company has a high dividend payout ratio of 163.38%, which indicates that it is paying out more in dividends than it earns. This could raise concerns about the sustainability of future dividends if earnings do not improve.
  • Recent downgrades from analysts, including a reduction in price targets by firms like Morgan Stanley and Royal Bank of Canada, suggest that there may be short-term challenges ahead for the stock.
  • Invitation Homes Inc. has a relatively low current ratio of 0.24, which indicates potential liquidity issues, as it may struggle to cover short-term liabilities with its current assets.
  • The stock has experienced fluctuations in trading volume, with recent volumes lower than the average, which could indicate reduced investor interest or confidence in the stock.
  • Market conditions for real estate can be volatile, and any downturn in the housing market could negatively impact the company's performance and stock price.

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