American Stock Story


USD 65.42  0.05  0.08%   

As many millenniums are excited about real estate space, it is only fair to go over American Campus Communities. We will try to explain if it is still possible for American Campus to generate above-average margins. Is the stock current valuation justified for 2022? Here i will cover my perspective on valuation to give American investors a better outlook on taking a position in the stock.
Published over a month ago
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Is American Campus Comm well positioned for August economic uncertainties?

The company has 4.01 B in debt with debt to equity (D/E) ratio of 1.22, which is OK given its current industry classification. American Campus is OVERVALUED at 59.49 per share with modest projections ahead.
We determine the current worth of American Campus Communities using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of American Campus Comm based exclusively on its fundamental and basic technical indicators. By analyzing American Campus's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of American Campus's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of American Campus. We calculate exposure to American Campus's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to American Campus's related companies.

American Campus Comm Investment Alerts

American investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring American Campus Communities performance across your portfolios.Please check all investment alerts for American

American Campus Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare American value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across American Campus competition to find correlations between indicators driving the intrinsic value of American.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for American Campus, but it might be worth checking our own buy vs. sell analysis

Disposition of 23343 shares by Lonnie Ledbetter of American Campus subject to Rule 16b-3

Legal trades by American Campus insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
American insider trading alert for disposition of common stock by Lonnie Ledbetter, EVP Chief Purpose & Inclusion, on 9th of August 2022. This event was filed by American Campus Communiti with SEC on 2022-08-09. Statement of changes in beneficial ownership - SEC Form 4. Lonnie Ledbetter currently serves as executive vice president chief purpose and inclusion officer of American Campus Comm [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is American Campus valued fairly by the market?

American Campus Comm reported the last year's revenue of 983.43 M. Total Income to common stockholders was 56.77 M with profit before taxes, overhead, and interest of 498.04 M.
 2019 2020 2021 2022 (projected)
Consolidated Income86.76 M69.85 M33.28 M51.48 M
Direct Expenses425.61 M413.68 M442.59 M374.29 M

Margins Breakdown

American profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or American Campus itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of American Campus profit margins.
Operating Margin20.67
EBITDA Margin0.46
Gross Margin0.58
Profit Margin0.039

American Campus Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. The current value of American Campus Earnings Before Interest Taxes and Depreciation Amortization EBITDA is 445,762,421. Also, American Campus Net Income Per Employee is increasing over the last 8 years. The current value of American Campus Net Income Per Employee is 16,574.

Will price continue to rise in August 2022?

Current variance is at 2.89. American Campus Communities exhibits relatively low volatility with skewness of 6.09 and kurtosis of 43.51. However, we advice investors to further investigate American Campus Communities to ensure all market statistics is disseminated and is consistent with investors' estimations about American Campus upside potential. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure American Campus' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact American Campus' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

American Campus Implied Volatility

American Campus' implied volatility exposes the market's sentiment of American Campus Communities stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if American Campus' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that American Campus stock will not fluctuate a lot when American Campus' options are near their expiration.

Our Final Perspective on American Campus

Whereas some other firms under the reit—residential industry are still a bit expensive, American Campus may offer a potential longer-term growth to investors. The inconsistency in the assessment between current American valuation and our trade advice on American Campus is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to American Campus.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of American Campus Communities. Please refer to our Terms of Use for any information regarding our disclosure principles.

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