Apartment Investment and Management Company (AIV) Buy or Sell Stock Guide

Last updated: May 02, '18

The analysis below may be helpful to you if you have any of the following questions about AIV stock:

  • Is AIV a buy or a sell?
  • Should I sell or hold AIV stock today?
  • Is AIV a good buy / a good investment?
  • What are AIV analyst opinions, recommendations, ratings?

Here are AIV stock buy reasons/signals:

1. Aimco’s diversified portfolio of mainly suburban and infill assets should be relatively insulated from new supply, allowing the company to extend its robust performance in the near term.

2. Positive demographic and economic trends will fuel strong demand for apartment rentals, including the millennial generation, which is pushing off major life decisions and renting for longer.

3. A more cautious stance toward new investments may prompt Aimco to return additional capital to investors over the next couple of years.

4. AIV profitability is improving. The YoY profit margin change was 17.91pp.

5. AIV forward dividend yield is 3.73%, higher than the industry (2.28%) and sector (1.23%) forward dividend yields.

6. AIV average analyst price target ($45.07) is above its current price ($40.44).

Here are AIV stock sell reasons/signals:

1. Converging high asset pricing, new supply, and a potentially increasing interest rate environment will add greater pressure Aimco's performance and valuation.

2. With relatively high total leverage, Aimco may divert more capital into paying off comparatively lower-return debt or preferred equity.

3. Potential tax reform and changes to the multifamily capital markets have the potential to significantly disrupt the industry.

4. AIV quarterly revenue growth was 1.70%, lower than the industry and sector average revenue growth (4.20% and 6.77%, respectively).

5. AIV forward P/E ratio is 120.24, and it’s high compared to its industry peers’ P/E ratios.

6. AIV PEG ratio (P/E adjusted for growth) is 18.73, and it’s high compared to its industry peers’ PEG ratios.

7. AIV short interest (days to cover the shorts) ratio is 4.02. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on AIV?

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