Stock Repurchase Plan Announced by Tri Pointe Homes (NYSE:TPH) Board

Tri Pointe Homes (NYSE:TPH) declared that its Board of Directors has authorized a stock repurchase program on Wednesday, December 18th, RTT News reports. The company plans to repurchase $250.00 million in shares. This repurchase authorization allows the construction company to repurchase up to 7.3% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its stock is undervalued.

Tri Pointe Homes Stock Down 3.6 %

Tri Pointe Homes stock opened at $36.81 on Thursday. The stock has a market cap of $3.45 billion, a PE ratio of 7.64, a P/E/G ratio of 0.64 and a beta of 1.60. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.64 and a quick ratio of 1.64. The stock’s fifty day moving average is $42.15 and its two-hundred day moving average is $41.86. Tri Pointe Homes has a 1-year low of $33.24 and a 1-year high of $47.78.

Tri Pointe Homes (NYSE:TPH) last announced its quarterly earnings results on Thursday, October 24th. The construction company reported $1.18 EPS for the quarter, beating the consensus estimate of $1.07 by $0.11. The company had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.05 billion. Tri Pointe Homes had a net margin of 10.41% and a return on equity of 14.83%. The firm’s revenue was up 34.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.76 earnings per share. On average, sell-side analysts expect that Tri Pointe Homes will post 4.72 EPS for the current fiscal year.

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. Oppenheimer lowered their target price on shares of Tri Pointe Homes from $56.00 to $53.00 and set an “outperform” rating for the company in a research note on Friday, October 25th. Wedbush restated a “neutral” rating and issued a $42.00 price objective on shares of Tri Pointe Homes in a report on Thursday, October 24th. StockNews.com downgraded shares of Tri Pointe Homes from a “buy” rating to a “hold” rating in a report on Tuesday. Zelman & Associates upgraded Tri Pointe Homes from an “underperform” rating to a “neutral” rating and set a $43.00 price target on the stock in a research note on Tuesday, September 17th. Finally, Royal Bank of Canada dropped their price objective on Tri Pointe Homes from $48.00 to $45.00 and set an “outperform” rating for the company in a research note on Friday, October 25th. Three investment analysts have rated the stock with a hold rating, two have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $45.75.

Insider Buying and Selling

In related news, COO Thomas J. Mitchell sold 77,384 shares of the business’s stock in a transaction dated Monday, December 16th. The stock was sold at an average price of $39.15, for a total value of $3,029,583.60. Following the transaction, the chief operating officer now owns 708,159 shares in the company, valued at $27,724,424.85. The trade was a 9.85 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. 2.00% of the stock is currently owned by company insiders.

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.