In a recent transaction, William H. Lyon, a director of Taylor Morrison Home Corp. (NYSE:TMHC), sold a significant number of shares in the company. The sales, which occurred on July 26 and July 29, 2024, involved a total of 30,000 shares with the proceeds amounting to over $2 million.
The shares were sold at prices ranging from $68.00 to $68.80, with the average prices for the transactions being $68.25 and $68.03, respectively. These sales were executed under a pre-arranged 10b5-1 trading plan, which 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.
The transactions were indirectly made through Lyon LLC, with the shares held by the William Harwell Lyon Separate Property Trust and other associated trusts for which Mr. Lyon serves as both manager and trustee. This structure gives him voting and investment power over the securities held by Lyon LLC. Additionally, Mr. Lyon is the beneficiary of each of the trusts involved.
After these sales, Mr. Lyon still has a substantial stake in the company, with over 2 million shares remaining under his indirect ownership. This indicates a continued vested interest in the company's performance and future.
Investors often monitor insider transactions as they can provide insights into how the company's top executives and directors view the stock's value and prospects. Taylor Morrison Home Corp. has not provided any official statement regarding the transactions or any changes to their business strategy following these sales.
In other recent news, Taylor Morrison Home Corporation has been in the spotlight following a series of positive developments. RBC Capital Markets recently maintained an Outperform rating on the company, raising the price target to $74 from the previous $63. The firm's revised earnings per share (EPS) estimates for Taylor Morrison now stand at $8.07 for 2024, a 3% increase, and at $8.20 for 2025, a 4% rise.
In the second quarter of 2024, Taylor Morrison showcased a strong performance with adjusted earnings reaching $1.97 per diluted share and a 12% increase in year-over-year book value per share. The homebuilder delivered 3,200 homes at an average price of $600,000 and reported a net income of $199 million for the quarter. The company's land inventory currently stands at 80,677 lots, with plans to control 60% to 65% shortly.
Taylor Morrison also highlighted plans, which include a projected full-year land investment between $2.3 billion and $2.5 billion. The company expects to deliver between 12,600 to 12,800 homes in 2024, maintaining a gross margin of around 24%. These recent developments suggest a positive outlook for the company, despite potential headwinds such as lot cost inflation and a 9.4% cancellation rate of gross orders.
InvestingPro Insights
Following the news of William H. Lyon's stock sales, investors of Taylor Morrison Home Corp. (NYSE:TMHC) may find additional context in the company's recent performance metrics. According to the latest data from InvestingPro, TMHC's market capitalization stands at $7.07 billion, with a price-to-earnings (P/E) ratio of 9.89, indicating that the stock may be reasonably valued compared to earnings. The adjusted P/E ratio for the last twelve months as of Q2 2024 is even lower at 9.01, which might suggest a more attractive valuation for investors.
Moreover, the company's stock has shown considerable strength in the market, with a price total return of 40.02% over the last year and a significant uptick of 27.89% over the last six months. This robust performance is also reflected in the stock trading near its 52-week high, at 98.33% of the peak price. Such data points to a positive investor sentiment and a potentially optimistic outlook for the company's stock value.
InvestingPro Tips highlight that Taylor Morrison Home Corp. has liquid assets that exceed its short-term obligations, which may provide investors with confidence in the company's financial health. Additionally, with analysts predicting profitability for the year and the company having been profitable over the last twelve months, the financial stability of TMHC appears to be solid.
For investors seeking more in-depth analysis and additional InvestingPro Tips, including insights into the stock's volatility and potential overbought status, they can explore further at InvestingPro's dedicated page for Taylor Morrison Home Corp. (https://www.investing.com/pro/TMHC). There are 11 additional tips listed in InvestingPro that could provide a more comprehensive understanding of the stock's potential. Interested readers can take advantage of a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, enhancing their investment research with valuable insights.
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