In a recent transaction on September 17, Taylor Morrison Home Corp (NYSE:TMHC) director William H. Lyon sold shares of the company's stock. The sale was for a total of 72 shares at a price of $70.0 each, amounting to a total value of $5,040.
This transaction was executed under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which was established on March 15, 2024. This plan allows company insiders to sell shares over a predetermined period of time, providing an affirmative defense against charges of insider trading.
Following the sale, Lyon still owns a significant number of shares indirectly through various trusts and an LLC, indicating a continued stake in the company's success. Specifically, the shares are held by Lyon LLC and the Lyon Separate Property Trust, with Lyon serving as both the manager and trustee, giving him voting and investment power over the securities held by these entities.
Investors often monitor insider transactions as they can provide insights into the company's performance and the confidence that executives and directors have in the business's future prospects. In the case of Taylor Morrison Home Corp, the recent sale represents a small fraction of Lyon's overall holdings, suggesting his long-term interest in the company remains substantial.
In other recent news, Taylor Morrison Home Corporation reported strong second-quarter 2024 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. Additionally, the company has entered into an accelerated share repurchase agreement with JPMorgan Chase (NYSE:JPM) Bank to buy back $50 million of its common stock, as part of its previously disclosed $500 million share repurchase program.
In terms of analyst activity, BTIG upgraded Taylor Morrison Home Corporation from Neutral to Buy, setting a price target of $78.00. This upgrade was influenced by the company's expected return on equity (ROE), which is anticipated to be over 15% in the next four quarters. On the other hand, RBC Capital Markets maintained an Outperform rating on the homebuilder, raising the price target to $74 from $63.
Taylor Morrison Home Corporation also revealed plans for a projected full-year land investment between $2.3 billion and $2.5 billion, with the expectation to deliver between 12,600 to 12,800 homes in 2024. Investors should note that these recent developments suggest a positive outlook for Taylor Morrison, despite potential headwinds such as lot cost inflation and a 9.4% cancellation rate of gross orders.
InvestingPro Insights
Amidst the recent insider trading activity at Taylor Morrison Home Corp (NYSE:TMHC), investors are keen to understand the company's financial health and future prospects. With director William H. Lyon's stock sale, it's valuable to look at the broader picture through key financial metrics and expert analysis provided by InvestingPro.
As of the last twelve months leading up to Q2 2024, TMHC boasts a solid market capitalization of $7.28 billion, reflecting the scale and stability of the company within the housing sector. The company's P/E ratio stands at an attractive 9.33, suggesting that the stock could be undervalued compared to earnings. This is further supported by a Price/Book ratio of 1.32, indicating that the market price closely aligns with the company's book value. Despite a revenue decline of 10.46% over the last year, TMHC has maintained a robust gross profit margin of 24.29%, highlighting efficient operations and cost management.
Investors might also find the company's recent performance in the stock market encouraging. TMHC has experienced a significant return over the last week, with a price total return of 9.6%. Moreover, the stock is trading near its 52-week high, at 97.22% of the peak value, reflecting strong investor confidence and market momentum.
For those seeking deeper insights, InvestingPro offers additional expert tips on TMHC, including analysis on stock price volatility and liquidity positions. With 11 more InvestingPro Tips available, investors can access a comprehensive view of the company's financial landscape, including predictions on profitability for the year and historical performance metrics, by visiting https://www.investing.com/pro/TMHC.
Overall, the data suggests that while Taylor Morrison Home Corp is navigating through market fluctuations, its strong returns and sound financial ratios could provide a basis for investor confidence, complementing the insights gained from insider trading patterns.
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