The markets stumbled on Thursday, pulling back from their gains of earlier in the week following a decline in oil prices and anxiety ahead of multiple central bank meetings. However, several stocks soared to their new 52-week highs during the trading hours, including American Homes 4 Rent (NYSE:AMH), American Tower Corp (NYSE:AMT), Caterpillar Inc. (NYSE:CAT), CenterPoint Energy, Inc. (NYSE:CNP), and Domino’s Pizza, Inc. (NYSE:DPZ).
Investors should pay attention to stocks hitting their 52-week highs as the achievement indicates that the stock has momentum on its side as it plunges through resistance levels and technical barriers. Let’s check out the details of this activity in the aforementioned stocks and see what hedge funds think about these stocks.
At Insider Monkey, we track around 765 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details about our small-cap strategy).
REIT Pushes to 52-Week High
American Homes 4 Rent (NYSE:AMH) hit its 52-week high of $21.27 on Thursday. Analysts at FBR & Co reaffirmed their ‘Outperform’ rating for the California-based real estate company and raised their price target on the stock to $22 from $20, in a report issued to investors on Thursday. Shares of the residential REIT have marched upward by 27% year-to-date. The company pays a relatively meager dividend for an REIT, amounting to an annual yield of 0.95%. Out of 766 active funds tracked by Insider Monkey, 17 hedge funds were long American Homes 4 Rent (NYSE:AMH) at the end of the first quarter.
Another REIT Plows Through Its 52-Week High
American Tower Corp (NYSE:AMT) is another REIT that reached its 52-week high on Thursday. The stock has forged even higher this morning, touching an all-time high of $118.26 and shares are up by over 21% year-to-date. Analysts at Morgan Stanley reiterated their ‘Overweight’ rating for the company and $125 price target on it earlier this week. The REIT pays a more robust dividend than its aforementioned peer, with the annual yield on its payments coming in at 1.80%. As of the end of March, 40 hedge funds in our system held stakes in American Tower Corp (NYSE:AMT).
On the next page we’ll discuss the 52-week highs achieved by Caterpillar, CenterPoint Energy and Domino’s Pizza.