Tri Pointe Homes (NYSE:TPH) Shares Gap Down on Analyst Downgrade

Tri Pointe Homes, Inc. (NYSE:TPH)’s share price gapped down before the market opened on Wednesday after Oppenheimer lowered their price target on the stock from $53.00 to $43.00. The stock had previously closed at $32.28, but opened at $31.00. Oppenheimer currently has an outperform rating on the stock. Tri Pointe Homes shares last traded at $31.63, with a volume of 108,549 shares traded.

Other equities analysts also recently issued research reports about the stock. Evercore ISI cut their price objective on shares of Tri Pointe Homes from $54.00 to $42.00 and set an “outperform” rating for the company in a research report on Wednesday. StockNews.com cut shares of Tri Pointe Homes from a “buy” rating to a “hold” rating in a research note on Tuesday, December 17th. Wedbush reaffirmed a “neutral” rating and set a $38.00 price target (down from $44.00) on shares of Tri Pointe Homes in a research note on Tuesday. Finally, Royal Bank of Canada cut shares of Tri Pointe Homes from an “outperform” rating to a “sector perform” rating and lowered their price target for the stock from $41.00 to $37.00 in a research note on Wednesday. Four analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $40.60.

Insider Transactions at Tri Pointe Homes

In related news, COO Thomas J. Mitchell sold 77,384 shares of the stock in a transaction dated Monday, December 16th. The shares were sold at an average price of $39.15, for a total value of $3,029,583.60. Following the sale, the chief operating officer now directly owns 708,159 shares of the company’s stock, valued at approximately $27,724,424.85. This represents a 9.85 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Tri Pointe Homes

Large investors have recently added to or reduced their stakes in the business. Mackenzie Financial Corp boosted its stake in shares of Tri Pointe Homes by 129.1% during the 4th quarter. Mackenzie Financial Corp now owns 51,968 shares of the construction company’s stock worth $1,884,000 after purchasing an additional 29,281 shares during the last quarter. Castlekeep Investment Advisors LLC acquired a new stake in shares of Tri Pointe Homes during the 4th quarter worth about $1,642,000. PharVision Advisers LLC acquired a new stake in shares of Tri Pointe Homes during the 4th quarter worth about $242,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Tri Pointe Homes by 20.7% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 284,527 shares of the construction company’s stock worth $10,317,000 after purchasing an additional 48,857 shares during the last quarter. Finally, Voloridge Investment Management LLC boosted its stake in shares of Tri Pointe Homes by 44.9% during the 4th quarter. Voloridge Investment Management LLC now owns 495,976 shares of the construction company’s stock worth $17,984,000 after purchasing an additional 153,758 shares during the last quarter. 97.01% of the stock is owned by institutional investors and hedge funds.

Tri Pointe Homes Price Performance

The company has a market capitalization of $2.88 billion, a price-to-earnings ratio of 6.37, a PEG ratio of 0.49 and a beta of 1.64. The company’s 50 day simple moving average is $36.32 and its 200-day simple moving average is $40.63. The company has a current ratio of 2.24, a quick ratio of 1.64 and a debt-to-equity ratio of 0.28.

Tri Pointe Homes (NYSE:TPH) last released its quarterly earnings results on Tuesday, February 18th. The construction company reported $1.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.30 by $0.07. Tri Pointe Homes had a net margin of 10.36% and a return on equity of 14.34%. The company had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.22 billion. On average, equities research analysts predict that Tri Pointe Homes, Inc. will post 4.8 earnings per share for the current fiscal year.

Tri Pointe Homes declared that its Board of Directors has authorized a stock buyback program on Wednesday, December 18th that authorizes the company to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the construction company to repurchase up to 7.3% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its stock is undervalued.

About Tri Pointe Homes

Tri Pointe Homes, Inc engages in the design, construction, and sale of single-family attached and detached homes in the United States. The company operates through a portfolio of six regional home building brands comprising Maracay in Arizona; Pardee Homes in California and Nevada; Quadrant Homes in Washington; Trendmaker Homes in Texas; TRI Pointe Homes in California, Colorado, and the Carolinas; and Winchester Homes in Maryland and Northern Virginia.