William H. Lyon, a director at Taylor Morrison Home Corp (NYSE:TMHC), has recently sold a significant portion of company stock. According to a filing with the Securities and Exchange Commission, Lyon sold a total of 66,641 shares over two separate transactions on November 8 and November 11. The shares were sold at prices ranging from $72.22 to $74.07, generating a total of approximately $4.86 million.
Following these sales, Lyon retains ownership of 2,069,600 shares indirectly through Lyon LLC, as well as additional shares held directly and through a trust. The transactions were executed under a pre-established Rule 10b5-1 trading plan, which limits the seller's discretion over the timing of the sales.
In other recent news, Taylor Morrison Home Corporation reported robust third-quarter results, delivering 3,394 homes and generating over $2 billion in revenue. Earnings per diluted share saw a significant 50% year-over-year increase, reaching $2.37. Despite disruptions from hurricanes, the company recorded a 9% year-over-year increase in net orders.
Analysts from Raymond (NS:RYMD) James and RBC Capital Markets have expressed confidence in the company's future. Raymond James raised the price target for Taylor Morrison shares to $84.00, maintaining an Outperform rating. The firm anticipates Taylor Morrison's return on equity (ROE) to be close to 17% in the coming year and expects about $300 million in accretive stock repurchases.
RBC Capital Markets also increased the price target for Taylor Morrison shares to $77.00, reiterating an Outperform rating. The firm highlighted Taylor Morrison's relative operational strength and financial discipline, suggesting these factors could lead to an improved valuation relative to its industry counterparts.
These recent developments reflect the company's resilience and adaptability in the face of market challenges. Taylor Morrison's performance this quarter was notably strong, maintaining a robust gross margin percentage trajectory into the fiscal year 2025. The company's diversified business model and resilience through economic cycles have been recognized by analysts, reinforcing a positive outlook for the future.
InvestingPro Insights
While William H. Lyon's recent stock sale might raise eyebrows, it's essential to consider Taylor Morrison Home Corp's (NYSE:TMHC) overall financial health and market performance. According to InvestingPro data, TMHC has demonstrated strong returns, with a remarkable 69.57% price total return over the past year and a 21.85% return in the last three months. This performance aligns with the InvestingPro Tip highlighting the company's "High return over the last year" and "Strong return over the last three months."
Despite the director's sale, TMHC's financial position appears robust. The company boasts a market capitalization of $7.27 billion and a P/E ratio of 9.15, suggesting a potentially undervalued stock. Moreover, an InvestingPro Tip indicates that "Cash flows can sufficiently cover interest payments," pointing to solid financial management.
It's worth noting that TMHC does not pay a dividend to shareholders, which could be a strategic decision to reinvest in growth. This information, combined with the company's profitability over the last twelve months, as highlighted by another InvestingPro Tip, paints a picture of a company focused on long-term value creation.
For investors seeking a deeper understanding of Taylor Morrison Home Corp's prospects, InvestingPro offers 10 additional tips, providing a more comprehensive analysis of the company's financial health and market position.
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