William Radford Lovett II, a director and significant shareholder of Dream Finders Homes, Inc. (NASDAQ:DFH), a homebuilder with a market capitalization of $2.85 billion, recently executed a series of stock sales, according to an SEC filing. InvestingPro analysis indicates the stock is currently trading below its Fair Value, despite showing strong profitability with a return on equity of 30%. On December 5 and 6, Lovett sold a total of 17,671 shares of the company's Class A common stock. The transactions, which were part of a pre-arranged trading plan, were executed at prices ranging from $30.35 to $32.19 per share, totaling approximately $547,695. Following these sales, Lovett holds 4,540,959 shares indirectly through a trust. With a P/E ratio of 9.46 and strong revenue growth of 8.6% over the last twelve months, InvestingPro subscribers can access 8 additional key insights about DFH's financial health and growth prospects.
In other recent news, Dream Finders Homes Inc. reported a third-quarter earnings per share (EPS) of $0.70, which fell short of BTIG's estimate of $0.88 and the FactSet consensus of $0.84. The shortfall was attributed to lower delivery volume, pricing, and gross margin, coupled with an increase in selling, general, and administrative expenses. Despite this, the company reaffirmed its closing guidance for the full year 2024, targeting 8,250 closings. BTIG adjusted its EPS forecasts, reducing the 2024 estimate to $3.10 from $3.30 and the 2025 estimate to $3.35 from $3.50.
In a significant development, Dream Finders Homes has announced a definitive agreement to acquire Alliant National Title Insurance Company. This move is expected to significantly expand Dream Finders' operations in the title insurance sector. Alliant National is known for its extensive network of over 700 independent agents across 32 states and the District of Columbia. The acquisition is subject to customary closing conditions and regulatory approval, with the terms remaining undisclosed.
BTIG maintains a neutral rating on Dream Finders Homes shares, citing the company's strong return on equity in the high-20% range and fair share valuation. These are recent developments that investors should note.
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