Whether you as an investor Vonovia(NASDAQ:AMD) stock now, we can look at it from a number of perspectives. First, there’s the dividend, which, while relatively high, is growing if anything on an adjusted basis. No matter how we twist or turn it: EUR 1.66 per share is less than the EUR 1.69 per share previously paid.
In any case, an insider at the DAX residential real estate group has now answered this question for himself. And buys. Let’s take a look at the details and possible investment theses for foolish investors too.
Vonovia shares: The first insider purchase!
We are in March of this year and can now look back on the first insider purchase of Vonovia shares. With Philip Grosse, the CFO of the residential real estate group has acquired shares in the company that he also manages.
Grosse paid around 380,000 euros for around 8,600 Vonovia shares. With an average purchase price of 44.59 euros, the official apparently took advantage of the more favorable conditions. In the last five days, the stock finally corrected by 5.6%, since the beginning of the year we see a minus of approx. 10.5%. Of course, we can’t say much about the motives behind the insider purchases.
Nevertheless, it is of course a positive signal in principle that a key official uses these share prices for a purchase. But what do you think his investment thesis is…?
Possible investment thesis
In the end, we can probably say that further growth is what is relevant for investors in Vonovia shares now. Management recently announced funds from operations of between EUR 2.0 and 2.1 billion for the 2022 financial year. A value that should be significantly higher than the previous year, partly due to the acquisition.
The management itself also sees itself in terms of its own dividend on a constant course. Adjusted for the capital increase, the dividend per share was even increased by eight cents. Even if this is a bit of a trick in terms of form, it still shows that stable payouts are still prioritized. Albeit on an adjusted level.
Fundamental valuation is also far from expensive in general. With a dividend yield of 3.77% and a price-to-FFO ratio of under 17, there’s potential for solid, defensive, potentially market-beating returns as growth continues. Especially since the business model of the Vonovia share as a residential real estate group is neither cyclical nor prone to crises.
There are therefore reasons to invest in Vonovia shares now. Whether they are enough for you is another question. In any case, a top insider has now made the first share buybacks this year. That is quite remarkable.
The item Vonovia shares: The 1st insider purchase of the year! appeared first on The Motley Fool Deutschland.
There’s one company whose name is getting a lot of buzz from analysts at The Motley Fool these days. It’s for us THE top investment for 2022.
You could also benefit from it. To do this, you first need to know everything about this unique company. So now we have one free special report compiled, which introduces this company in detail.
Vincent owns shares of Vonovia. The Motley Fool does not own any of the stocks mentioned.
Motley Fool Deutschland 2022