Preferred Apartment Communities Receives a Buy from Canaccord Genuity

In a report released yesterday, Michael Kodesch from Canaccord Genuity reiterated a Buy rating on Preferred Apartment Communities (NYSEArca: APTS), with a price target of $16. The company’s shares opened today at $14.81.

Kodesch wrote:

“We believe management may be taking a conservative stance on guidance given that annualizing 1Q’s result would yield the midpoint of the present range, while APTS has delivered average FFO growth on a sequential quarter-over- quarter basis of 3% since 1Q15 and 5% since 1Q12. While we continue to highlight that quarterly FFO results should not drive stock performance following the print given the transactional noise in earnings, we also believe continued growth in FFO is an affirmation of the company’s strategy and expect the stock to trade up relative to peers given the fundamental challenges limiting growth elsewhere in the space.”

According to, Kodesch is a 3-star analyst with an average return of 9.6% and a 90.0% success rate. Kodesch covers the Financial sector, focusing on stocks such as Apartment Investment & Management, NexPoint Residential Trust Inc, and Monogram Residential Trust.

Preferred Apartment Communities has an analyst consensus of Moderate Buy, with a price target consensus of $15.50.

The company has a one year high of $15.39 and a one year low of $12.02. Currently, Preferred Apartment Communities has an average volume of 171.8K.

Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock. Most recently, in March 2017, Daniel Dupree, the CIO of APTS sold 13,280 shares for a total of $170,914.

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Preferred Apartment Communities, Inc. engages in the acquisition and operation of multifamily properties in select targeted markets throughout the United States. It operates through the following segments: Multifamily Communities, Financing, New Market Properties, and Office Buildings. The Multifamily Communities segment consists of residential multifamily communities portfolio including student housing community and the Lenox Portfolio. The Financing segment refers to the portfolio of real estate loans bridge loans, and other instruments deployed to to partially finance the development, construction, and prestabilization carrying costs of new multifamily communities and other real estate and real estate related assets. The New Market Properties segment covers portfolio of grocery-anchored shopping centers, as well as the financial results from the retail real estate loans. The Office Buildings segment relates to the three office buildings located in Atlanta, Georgia and Birmingham, Alabama. The company was founded by Leonard A. Silverstein and John A. Williams on September 18, 2009 and is headquartered in Atlanta, GA.

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