Dallas-based Invitation Homes Inc. (INVH) is a single-family home leasing and management company. With a market cap of $21.8 billion, Invitation Homes meets the changing lifestyle demands by providing access to high-quality, updated homes with various features.
The company has substantially underperformed the broader market over the past year. INVH stock is up 2.4% over the past 52 weeks compared to the S&P 500 Index’s ($SPX) 17% gains over the same time frame. In 2024, INVH stock gained 4.3%, lagging behind SPX’s 9.9% returns on a YTD basis.
Zooming in further, INVH has also underperformed the Residential And Multisector Real Estate ETF’s (REZ) 14.1% returns over the past 52 weeks and 11.5% gains in 2024.
INVH stock dropped by 7.7% in the subsequent trading session after the release of its Q2 earnings on Jul. 24. Despite the company reporting an 8.8% increase in quarterly revenues and a 5.3% growth in adjusted funds from operations (AFFO) compared to the year-ago quarter, its net income plummeted by 47%. These mixed results likely unsettled investors, leading to the price decline.
For the current fiscal year, ending in December, analysts expect Invitation Homes' Funds from Operations (FFO) per share to grow 3.4% year over year to $1.83. The company has a history of exceeding or matching the consensus FFO per share estimates in its quarterly reports. In the last reported quarter, Invitation Homes exceeded the FFO per share projections by 2.2%.
Among the 21 analysts covering the INVH stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, three “Moderate Buys,” and seven “Holds.”
This configuration is slightly more bullish than a month ago, with nine analysts recommending a “Strong Buy.”
On Jul. 30, KBW analyst Jade Rahmani maintained a “Hold” rating with a target price of $37.
INVH's mean price target of $38.15 represents a premium of 7.2% to current price levels. The street-high target of $41 indicates a potential upside of 15.2% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
