In a recent transaction, William H. Lyon, a director at Taylor Morrison Home Corp. (NYSE:TMHC), sold a total of 30,000 shares of the company's common stock. The sale was executed at an average price of $66.31 per share, resulting in a total value of approximately $1.99 million. This transaction was carried out on July 18, 2024, according to a Form 4 document filed with the Securities and Exchange Commission.
The shares were sold in multiple transactions with prices ranging from $66.01 to $66.58. The weighted average price for these sales was reported at $66.31 per share. It is noted that the sales were made 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, reducing the potential for market manipulation or insider trading accusations.
Post-transaction, the director still holds a significant number of shares indirectly. The shares sold were owned by Lyon LLC, which is managed by Lyon and whose members include various trusts for which he serves as trustee. The disclosed holdings following the transaction suggest that Lyon maintains a substantial interest in the company's performance and direction.
Taylor Morrison Home Corp., based in Scottsdale, Arizona, operates in the real estate and construction industry. Investors and the market often watch insider transactions closely as they may provide insights into the company's performance and insider perspectives on the stock's value.
The company has not made any official statement regarding the transaction, and it remains a routine disclosure as part of the regulatory requirements for company insiders. Shareholders and potential investors in Taylor Morrison Home Corp. can access full details of the transaction upon request from the SEC or the company.
In other recent news, Taylor Morrison announced the appointment of Jaime Pou as the new president of its Atlanta division, marking a significant development in the company's leadership. This coincides with the company's plans to expand its footprint in Atlanta, with eight new communities set to launch throughout 2024. The Atlanta division has already opened four new communities this year, with four more, including Henson Square in Lawrenceville and Somerset at Veterans Memorial in Mableton, set to open soon.
RBC Capital Markets has maintained its Outperform rating on Taylor Morrison, raising the stock target from $61.00 to $63.00. This decision follows the company's first-quarter results, which surpassed expectations and prompted RBC to revise the estimated earnings per share (EPS) for 2024 by 8% to $7.85. Despite potential challenges due to high interest rates and escalating land costs, the firm's stance remains positive.
In the first quarter of 2024, Taylor Morrison reported a strong financial performance with a 29% year-over-year increase in net sales orders, delivering 2,731 homes. This resulted in an earnings per share (EPS) of $1.75 and a 14% growth in book value per share. The company also raised its full-year guidance and expects to deliver around 12,500 homes at an average price between $600,000 and $610,000. These recent developments underscore the company's ongoing growth and resilience in the face of market challenges.
InvestingPro Insights
Amidst the backdrop of insider transactions at Taylor Morrison Home Corp. (NYSE:TMHC), investors are keen to understand the current financial health and market performance of the company. As William H. Lyon's recent sale of shares garners attention, it is important to consider the broader financial context in which this transaction occurs.
From a valuation standpoint, Taylor Morrison Home Corp. stands with a market capitalization of $6.92 billion and an attractive price-to-earnings (P/E) ratio of 9.15, reflecting investor sentiment on earnings potential. Adjusting for the last twelve months as of Q1 2024, the P/E ratio sits slightly lower at 8.46, hinting at a favorable earnings outlook relative to the stock price. The company's price to book ratio during the same period is 1.27, which could suggest that the stock is reasonably valued in relation to the company's net assets.
Despite a revenue decline of 8.89% over the last twelve months as of Q1 2024, Taylor Morrison Home Corp. has demonstrated a quarterly revenue growth of 2.28% in Q1 2024. This short-term uptick may indicate resilience and an ability to adapt in a challenging market. Furthermore, the company's gross profit margin stands at 24.44%, which showcases its ability to maintain profitability.
From a performance perspective, Taylor Morrison Home Corp. has experienced a strong return over the last month, with a 16.25% increase, and a notable 30.29% return over the past year, aligning with the company trading near its 52-week high. This momentum is further underscored by the fact that the stock is currently at 96.45% of its 52-week high price.
For those interested in further insights and metrics, there are additional InvestingPro Tips available, including the company's liquidity position, debt levels, and profitability forecasts. With these considerations in mind, investors can make more informed decisions about Taylor Morrison Home Corp. For a deeper analysis and more exclusive tips, consider subscribing to InvestingPro with the promo code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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