In recent transactions, Darrell Sherman, Executive Vice President, Chief Legal Officer, and Secretary at Taylor Morrison Home Corp (NYSE:TMHC), sold a substantial amount of company stock. On October 28 and 30, Sherman executed multiple sales totaling $6,697,529. The sale prices ranged from $70.00 to $70.50 per share.
These transactions involved the sale of common stock, with the first set on October 28, where Sherman sold shares at prices between $70.00 and $70.01. On October 30, additional sales occurred at $70.50 per share. Following these transactions, Sherman's direct ownership of Taylor Morrison stock now stands at 109,217 shares.
In addition to the sales, Sherman also exercised stock options, acquiring shares at prices ranging from $23.84 to $34.75 per share, amounting to a total of $1,830,353. These option exercises reflect a strategic move to capitalize on vested stock options, although the shares acquired were subsequently sold.
In other recent news, Taylor Morrison Home Corporation reported impressive third-quarter results, delivering 3,394 homes and generating over $2 billion in revenue. The company also saw a significant 50% year-over-year increase in earnings per diluted share, reaching $2.37. Despite disruptions from hurricanes, the company recorded a 9% year-over-year increase in net orders. Analyst firms Raymond James and RBC Capital Markets have both maintained an Outperform rating on the company's stock, with Raymond James increasing the price target to $84.00 and RBC Capital Markets to $77.00. Both firms highlighted Taylor Morrison's ability to overcome market challenges and maintain robust gross margins. Raymond James expressed confidence in the company's ability to adapt to varying mortgage rate scenarios and leverage its strong balance sheet and land holdings to drive earnings per share growth. RBC Capital Markets, on the other hand, emphasized Taylor Morrison's operational strength and financial discipline, which could lead to an improved valuation relative to its industry counterparts. These are recent developments in the company's performance and outlook.
InvestingPro Insights
Taylor Morrison Home Corp (NYSE:TMHC) has been experiencing significant market momentum, as evidenced by its recent stock performance and financial metrics. According to InvestingPro data, the company's stock has seen a remarkable 81.16% price total return over the past year, and it's currently trading near its 52-week high at 96.48% of that peak.
This strong performance aligns with several InvestingPro Tips. For instance, TMHC has demonstrated a "High return over the last year" and is "Trading near 52-week high," which corroborates the timing of Darrell Sherman's stock sales. The company's financial health appears robust, with InvestingPro Tips indicating that "Liquid assets exceed short term obligations" and "Cash flows can sufficiently cover interest payments."
Despite the significant insider selling by Sherman, TMHC's fundamentals remain solid. The company boasts a P/E ratio of 8.45 (adjusted for the last twelve months as of Q3 2024), suggesting the stock may still be undervalued relative to its earnings. Additionally, with a market capitalization of $7.2 billion and revenue of $7.83 billion for the last twelve months, Taylor Morrison maintains a strong market position in the homebuilding sector.
It's worth noting that while Sherman has reduced his stake, analysts remain optimistic about TMHC's prospects. An InvestingPro Tip highlights that "Analysts predict the company will be profitable this year," which could explain why executives might choose to realize gains at current price levels.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Taylor Morrison Home Corp, providing deeper insights into the company's financial health and market position.
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