Tri Pointe Homes (NYSE:TPH) Cut to “Sector Perform” at Royal Bank of Canada

Royal Bank of Canada lowered shares of Tri Pointe Homes (NYSE:TPH) from an outperform rating to a sector perform rating in a research note published on Wednesday, Marketbeat reports. They currently have $37.00 price target on the construction company’s stock, down from their prior price target of $41.00.

Other equities research analysts also recently issued reports about the stock. StockNews.com downgraded shares of Tri Pointe Homes from a “buy” rating to a “hold” rating in a research note on Tuesday, December 17th. Wedbush reissued a “neutral” rating and set a $38.00 target price (down from $44.00) on shares of Tri Pointe Homes in a research report on Tuesday. Finally, Oppenheimer reduced their target price on shares of Tri Pointe Homes from $56.00 to $53.00 and set an “outperform” rating on the stock in a research report on Friday, October 25th. Four research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. According to data from MarketBeat, Tri Pointe Homes currently has an average rating of “Hold” and an average target price of $40.60.

Tri Pointe Homes Price Performance

TPH opened at $30.88 on Wednesday. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 0.28. Tri Pointe Homes has a 52-week low of $30.67 and a 52-week high of $47.78. The company has a 50 day moving average of $36.69 and a two-hundred day moving average of $40.76. The company has a market cap of $2.89 billion, a P/E ratio of 6.41, a P/E/G ratio of 0.58 and a beta of 1.64.

Tri Pointe Homes (NYSE:TPH) last released its quarterly earnings data 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 10.41% and a return on equity of 14.83%. The company had revenue of $1.22 billion during the quarter, compared to the consensus estimate of $1.22 billion. On average, analysts expect that Tri Pointe Homes will post 4.72 earnings per share for the current year.

Tri Pointe Homes declared that its board has approved a share repurchase program on Wednesday, December 18th that permits the company to buyback $250.00 million in outstanding shares. This buyback authorization permits the construction company to repurchase up to 7.3% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Insider Transactions at Tri Pointe Homes

In related news, COO Thomas J. Mitchell sold 77,384 shares of the company’s stock in a transaction on 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 $27,724,424.85. This represents a 9.85 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 2.00% of the company’s stock.

Institutional Trading of Tri Pointe Homes

Several institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its holdings in Tri Pointe Homes by 1.3% in the fourth quarter. Vanguard Group Inc. now owns 11,573,813 shares of the construction company’s stock valued at $419,666,000 after acquiring an additional 143,365 shares in the last quarter. Pacer Advisors Inc. acquired a new stake in Tri Pointe Homes in the fourth quarter valued at $118,407,000. Geode Capital Management LLC raised its holdings in Tri Pointe Homes by 1.8% in the fourth quarter. Geode Capital Management LLC now owns 2,529,823 shares of the construction company’s stock valued at $91,748,000 after acquiring an additional 44,160 shares in the last quarter. GW&K Investment Management LLC raised its holdings in Tri Pointe Homes by 5.3% in the fourth quarter. GW&K Investment Management LLC now owns 2,036,689 shares of the construction company’s stock valued at $73,850,000 after acquiring an additional 102,187 shares in the last quarter. Finally, American Century Companies Inc. raised its holdings in Tri Pointe Homes by 14.0% in the fourth quarter. American Century Companies Inc. now owns 1,946,471 shares of the construction company’s stock valued at $70,579,000 after acquiring an additional 238,807 shares in the last quarter. 97.01% of the stock is owned by institutional investors and hedge funds.

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.