By In a recent transaction, William H. Lyon, a director at Taylor Morrison Home Corp. (NYSE:TMHC), sold a significant portion of his holdings in the company. The sale, which took place on September 18, 2024, involved 49,928 shares of common stock at an average price of $70.25, resulting in a total value of approximately $3.5 million.
The shares were sold in multiple transactions with prices ranging from $70.00 to $71.03. According to a footnote in the filing, the transactions were executed pursuant to a Rule 10b5-1 Plan, which was established on March 15, 2024. This plan allows company insiders to set up a predetermined schedule for buying or selling stocks at a time when they are not in possession of material non-public information. As such, Lyon had no discretion over the timing of these sales.
Following the sale, Lyon still holds a sizable amount of Taylor Morrison stock indirectly through various entities. The shares sold were owned by Lyon LLC, and the reporting document clarifies that Lyon has voting and investment power over these securities as he is the manager of Lyon LLC and the trustee of the associated Lyon Trusts, which are beneficiaries of the shares. Additionally, Lyon is also a trustee of the Lyon Separate Property Trust, which holds additional shares.
Investors often monitor insider transactions for insights into how corporate executives view the stock’s value and prospects. While the sale of stock by an insider may raise questions among investors, the use of a 10b5-1 Plan can provide reassurance that the transactions were not based on any recent or upcoming material information that has not been publicly disclosed.
Taylor Morrison Home Corp., based in Scottsdale, Arizona, operates in the real estate and construction industry and is known for its work as an operative builder. The company’s stock is publicly traded on the New York Stock Exchange under the ticker symbol TMHC.
In other recent news, Taylor Morrison Home Corporation has been making significant strides in the market. The homebuilder has entered into an accelerated share repurchase agreement with JPMorgan Chase (NYSE:JPM) Bank to buy back $50 million of its common stock. This move is part of Taylor Morrison’s previously disclosed $500 million share repurchase program, signaling the company’s commitment to returning value to its shareholders.
In the realm of analyst ratings, Taylor Morrison has seen favorable assessments. BTIG upgraded the company from Neutral to Buy, setting a price target of $78.00. This decision comes after investor meetings with the company’s management, which increased BTIG’s confidence in Taylor Morrison’s long-term growth strategy. RBC Capital Markets also maintained an Outperform rating on Taylor Morrison, raising the price target to $74 from $63.
On the financial front, Taylor Morrison’s second-quarter 2024 performance exceeded expectations. The company reported adjusted earnings of $1.97 per diluted share and a net income of $199 million for the quarter. The homebuilder delivered 3,200 homes at an average price of $600,000 and saw a 12% increase in year-over-year book value per share.
In terms of future plans, Taylor Morrison expects to deliver between 12,600 to 12,800 homes in 2024, with a projected full-year land investment between $2.3 billion and $2.5 billion. These recent developments indicate a positive trajectory for Taylor Morrison, despite potential challenges such as lot cost inflation and a 9.4% cancellation rate of gross orders.
InvestingPro Insights
Amid the news of William H. Lyon’s stock sale, Taylor Morrison Home Corp. (NYSE:TMHC) continues to exhibit financial robustness in several areas, according to recent data from InvestingPro. The company’s market capitalization stands strong at $7.49 billion, underlining its significant presence in the real estate and construction sector. Additionally, with a P/E ratio of 10.42 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at 9.62, TMHC shows a relatively attractive valuation compared to its earnings.
InvestingPro Tips suggest that TMHC’s stock price movements have been quite volatile, which could be of interest to investors looking for dynamic trading opportunities. Moreover, the company has not only delivered a high return over the last year but also boasts a strong return over the last three months, indicating a positive short-term performance trend. These returns are particularly noteworthy considering TMHC is trading near its 52-week high, with the price at 99.87% of this peak. Notably, analysts included in InvestingPro’s tips predict the company will continue to be profitable this year, which could provide further confidence to investors.
For those interested in deeper analysis and additional insights, there are 9 more InvestingPro Tips available for TMHC, which can be found at https://www.investing.com/pro/TMHC. These tips can provide investors with a more comprehensive understanding of the company’s financial health and market position.
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