William H. Lyon, a director at Taylor Morrison Home Corp (NYSE:TMHC), has recently sold shares of the company's common stock. According to a filing with the Securities and Exchange Commission, Lyon sold a total of 24,284 shares on November 25, 2024. The sales occurred at weighted average prices ranging from $74.11 to $74.69 per share, amounting to approximately $1.8 million in total.
These transactions were conducted under a Rule 10b5-1 trading plan, which Lyon entered into on March 15, 2024, indicating that the timing of the sales was predetermined and not subject to his discretion. Following these transactions, Lyon holds 2,045,316 shares indirectly through Lyon LLC and 32,570 shares indirectly through a trust, as well as 21,786 shares directly.
In other recent news, Taylor Morrison Home Corp has been making significant strides. As part of its $1 billion share repurchase program, the company has entered into an accelerated share repurchase agreement with JPMorgan Chase (NYSE:JPM) Bank, involving the repurchase of $50 million worth of its common stock. The final settlement of this agreement is expected to be concluded by the first quarter of 2025.
The homebuilder displayed strong third-quarter results, generating over $2 billion in revenue from the delivery of 3,394 homes. Earnings per diluted share saw a significant increase of 50% year-over-year, hitting $2.37. Despite disruptions from hurricanes, a 9% year-over-year increase in net orders was reported.
Analysts from Raymond (NS:RYMD) James and RBC Capital Markets have shown confidence in Taylor Morrison's potential, with both firms raising their price targets to $84.00 and $77.00 respectively. Raymond James emphasized the company's ability to adapt to varying mortgage rate scenarios, while RBC Capital Markets noted the company's operational strength and financial discipline. These recent developments highlight Taylor Morrison's ongoing efforts to deliver value to its shareholders.
InvestingPro Insights
Taylor Morrison Home Corp (NYSE:TMHC) has been experiencing significant momentum in the market, as evidenced by recent InvestingPro data and tips. The company's stock has shown remarkable strength, with a 65.69% price total return over the past year and a 28.5% return in the last six months. This aligns with the InvestingPro Tip indicating a "high return over the last year" and a "large price uptick over the last six months."
The recent insider sale by William H. Lyon occurs as TMHC is trading near its 52-week high, with the current price at 98.04% of that peak. This could suggest that insiders perceive the stock to be fairly valued at current levels. However, it's worth noting that analysts still see potential upside, with a fair value target of $84 USD, above the recent selling prices.
From a financial perspective, TMHC appears to be in a solid position. The company's P/E ratio of 9.6 indicates that it may be undervalued compared to the broader market. Additionally, an InvestingPro Tip highlights that TMHC "operates with a moderate level of debt" and that "liquid assets exceed short term obligations," suggesting a healthy balance sheet.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for TMHC, providing a deeper understanding of the company's financial health and market position.
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