In the second quarter of 2023, Wedge Capital Management L L P NC significantly increased its position in Taylor Morrison Home Co. (NYSE:TMHC) by 11,327.4%, according to the company’s recent filing with the Securities and Exchange Commission (SEC). The firm purchased an additional 653,820 shares of the construction company’s stock, bringing their total ownership to 659,592 shares. At the end of this reporting period, Wedge Capital Management L L P NC owned approximately 0.60% of Taylor Morrison Home, with a market value of $32,168,000.
Taylor Morrison Home recently reported its quarterly earnings for July 2023. The construction company revealed earnings per share (EPS) of $2.12 for the quarter, surpassing analysts’ consensus estimate of $1.69 by $0.43 per share. This positive result reflects a net margin of 12.25% and a return on equity of 22.24%. Additionally, Taylor Morrison Home reported revenue of $2.06 billion for the quarter, beating analysts’ expectations of $1.71 billion.
Compared to the same quarter in the previous year, Taylor Morrison Home experienced a growth in quarterly revenue by 3.3%. Equities analysts anticipate that for the entire fiscal year, Taylor Morrison Home will post earnings per share (EPS) amounting to $7.05.
The financial performance and promising outlook have caught the attention of several analysts who have expressed their views on TMHC shares lately. Credit Suisse Group raised their price target from $47.00 to $56.00 in a research note published on July 27th while Wedbush increased theirs from $45.00 to $61.00 on June 28th.
Barclays joined in with an adjusted price target from $52.00 to $55 and a rating of “equal weight” for the stock on July 27th. Seaport Res Ptn reiterated a “neutral” rating on Taylor Morrison Home in their research note dated June 14th. Additionally, Deutsche Bank Aktiengesellschaft provided coverage of Taylor Morrison Home in its report on May 31st, with a “hold” rating and a price objective of $50.00.
In evaluation of these opinions, it is worth noting that five analysts have assigned a hold rating to the stock, while two have given it a buy rating. According to data from Bloomberg.com, TMHC currently has an overall consensus rating of “Hold” and an average price target of $47.93.
The recent increase in Wedge Capital Management L L P NC’s position in Taylor Morrison Home Co., along with the company’s positive quarterly results, suggest growing confidence in the construction company’s market potential. The endorsement from various analysts further underlines this sentiment and hints at continued interest among investors. As always, investors should conduct thorough research and analysis before making any investment decisions.
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Institutional Investors Show Strong Interest in Taylor Morrison Home Stock
In a series of recent transactions, several prominent investors have been actively buying and selling shares of Taylor Morrison Home, a renowned construction company. Notably, US Bancorp DE increased its holdings in the company during the first quarter, acquiring an additional 279 shares and now owning 5,696 shares of the company’s stock worth $218,000. Similarly, Resonant Capital Advisors LLC raised its share holdings by 5.3% by acquiring an additional 384 shares with a total value of $293,000.
Bellecapital International Ltd., another investor, saw a slight increase of 2.8%, acquiring an extra 445 shares valued at $619,000. Likewise, CWM LLC boosted its holdings by a significant 39.0%, adding an extra 464 shares worth $63,000 to its portfolio during the last quarter. Finally, Centaurus Financial Inc. experienced a modest growth of 1.7% as it acquired an additional 542 shares valued at $871,000.
These moves further illustrate the strong demand for Taylor Morrison Home stock from institutional investors who now collectively own approximately 95.32% of the company’s outstanding shares.
Despite these positive developments in terms of institutional investment activity, there have also been notable insider sales within the company. Director William H. Lyon sold a total of 600 shares on July 20th at an average price of $52.06 per share for a total value of $31,236. Lyon currently holds over three million shares in Taylor Morrison Home valued at approximately $163 million.
Additionally, on July 3rd, Lyon sold another batch of company stock – this time totaling 2,000 shares – for an average price per share of $49.03 with a combined sale value of $98,060. Following this transaction completion on July 20th and taking into account previous sales made by Lyon earlier in the year as well, insiders have collectively sold 294,666 shares of the company’s stock during the last quarter, amounting to approximately $14.3 million. This equates to around 5.50% of the current outstanding stock being held by company insiders.
In terms of stock performance, TMHC has experienced fairly stable trading throughout the day, with a slight decrease of $0.09 per share to reach a price of $43.10. The trading volume was relatively moderate, with 644,946 shares exchanged compared to an average daily trading volume of 773,100 shares. Over the past year, Taylor Morrison Home’s stock has seen various fluctuations in its price range, fluctuating between a low of $22.64 and a high of $52.09.
Some key financial metrics indicate that Taylor Morrison Home Co. possesses certain strengths and stability as a company. With a current ratio of 6.13 and quick ratio of 1.49, the company is equipped to meet its short-term obligations efficiently. Furthermore, the debt-to-equity ratio stands at 0.47 which suggests that Taylor Morrison Home has been maintaining healthy leverage in its capital structure.
The stock’s recent performance can be further analyzed through examining its moving averages – over the past 50 days, TMHC had an average price of $47.18 and over the past 200 days it had an average price of $43.97.
As it stands today, Taylor Morrison Home boasts a market capitalization value of approximately $4.72 billion with a relatively low PE ratio standing at just 4.74 but sports a higher beta value indicating heightened volatility compared to benchmark indices like S&P500
Overall, these developments in institutional investment activity along with insider sales provide insights into the ongoing dynamics within Taylor Morrison Home stockworkings thus necessitating careful consideration for investors aiming for maximizing their portfolio returns while balancing risk tolerance against volatility present in the market.
