Taylor Morrison Home (NYSE:TMHC) Shares Gap Up – Here’s Why

Taylor Morrison Home Corporation (NYSE:TMHC) gapped up before the market opened on Monday . The stock had previously closed at $58.50, but opened at $71.57. Taylor Morrison Home shares last traded at $71.5650, with a volume of 4,655,753 shares traded.

Taylor Morrison Home News Roundup

Here are the key news stories impacting Taylor Morrison Home this week:

• Positive Sentiment: Berkshire Hathaway agreed to acquire Taylor Morrison Home Corporation for $72.50 per share in cash, valuing the deal at about $8.5 billion in enterprise value and representing roughly a 24% premium to the prior close. PR Newswire: Berkshire Hathaway to Acquire Taylor Morrison Home Corporation for $8.5 Billion
• Positive Sentiment: The deal signals strong confidence from Berkshire Hathaway in the U.S. housing market and marks one of the first major strategic moves under CEO Greg Abel, which may boost investor sentiment across the sector. CNBC: Berkshire Hathaway makes $6.8 billion housing bet with Taylor Morrison deal

Analyst Upgrades and Downgrades

TMHC has been the subject of several recent analyst reports. Truist Financial lowered their price target on Taylor Morrison Home from $80.00 to $72.50 and set a “buy” rating for the company in a report on Monday. Seaport Research Partners reissued a “sell” rating and issued a $49.00 target price (down from $85.00) on shares of Taylor Morrison Home in a research report on Tuesday, April 7th. Weiss Ratings downgraded shares of Taylor Morrison Home from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, April 24th. Citigroup lowered shares of Taylor Morrison Home from an “outperform” rating to a “market perform” rating in a research report on Monday. Finally, Barclays increased their price target on shares of Taylor Morrison Home from $68.00 to $69.00 and gave the stock an “overweight” rating in a research note on Thursday, April 23rd. Six research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $76.86.

Taylor Morrison Home Price Performance

The company has a 50 day simple moving average of $59.11 and a 200 day simple moving average of $61.15. The company has a market capitalization of $6.69 billion, a price-to-earnings ratio of 10.69, a price-to-earnings-growth ratio of 1.35 and a beta of 1.47. The company has a quick ratio of 1.45, a current ratio of 7.66 and a debt-to-equity ratio of 0.37.

Taylor Morrison Home (NYSE:TMHC) last released its quarterly earnings data on Wednesday, April 22nd. The construction company reported $1.12 earnings per share for the quarter, beating the consensus estimate of $0.82 by $0.30. Taylor Morrison Home had a return on equity of 11.48% and a net margin of 8.77%.The business had revenue of $1.39 billion for the quarter, compared to analyst estimates of $1.33 billion. During the same period in the previous year, the company posted $2.07 EPS. The company’s revenue was down 26.8% compared to the same quarter last year. As a group, research analysts predict that Taylor Morrison Home Corporation will post 5.36 EPS for the current year.

Institutional Investors Weigh In On Taylor Morrison Home

Several institutional investors have recently bought and sold shares of TMHC. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Taylor Morrison Home by 5.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 299,888 shares of the construction company’s stock worth $18,005,000 after acquiring an additional 16,379 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in shares of Taylor Morrison Home by 30.7% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 899 shares of the construction company’s stock valued at $55,000 after acquiring an additional 211 shares during the period. M&T Bank Corp acquired a new position in shares of Taylor Morrison Home during the 2nd quarter valued at $262,000. EverSource Wealth Advisors LLC boosted its position in Taylor Morrison Home by 406.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 897 shares of the construction company’s stock worth $55,000 after purchasing an additional 720 shares during the period. Finally, Marshall Wace LLP boosted its position in Taylor Morrison Home by 12.0% during the 2nd quarter. Marshall Wace LLP now owns 8,029 shares of the construction company’s stock worth $493,000 after purchasing an additional 859 shares during the period. 95.16% of the stock is currently owned by hedge funds and other institutional investors.

Taylor Morrison Home Company Profile

Taylor Morrison Home Corporation (NYSE:TMHC) is a leading national homebuilder and developer specializing in the design, construction and sale of single-family detached and attached homes. The company’s portfolio spans entry-level, first-time, move-up and active-adult segments, offering buyers a diverse array of architectural styles, floor plans and personalized design options. Through its vertically integrated model, Taylor Morrison manages land acquisition, community development, construction and sales to deliver quality homes and customer-focused experiences across its markets.

The company’s heritage traces back to Morrison Homes, founded in 1977, and Taylor Woodrow, established in 1921 in the United Kingdom.