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 morning, MarketBeat.com reports. Royal Bank of Canada currently has $37.00 price objective on the construction company’s stock, down from their prior price objective of $41.00.

Several other research firms have also commented on TPH. StockNews.com lowered Tri Pointe Homes from a “buy” rating to a “hold” rating in a report on Tuesday, December 17th. Oppenheimer dropped their price objective on Tri Pointe Homes from $56.00 to $53.00 and set an “outperform” rating on the stock in a report on Friday, October 25th. Finally, Wedbush reaffirmed a “neutral” rating and set a $38.00 price objective (down previously from $44.00) on shares of Tri Pointe Homes in a report on Tuesday. Four investment analysts have rated the stock with a hold rating and two have given a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $40.60.

Tri Pointe Homes Stock Performance

NYSE:TPH opened at $30.79 on Wednesday. The firm has a market capitalization of $2.88 billion, a PE ratio of 6.37, a price-to-earnings-growth ratio of 0.49 and a beta of 1.64. The business’s fifty day moving average price is $36.32 and its 200 day moving average price is $40.63. The company has a debt-to-equity ratio of 0.28, a current ratio of 2.24 and a quick ratio of 1.64. Tri Pointe Homes has a 12 month low of $30.25 and a 12 month high of $47.78.

Tri Pointe Homes (NYSE:TPH) last posted its earnings results on Tuesday, February 18th. The construction company reported $1.37 EPS for the quarter, beating the consensus estimate of $1.30 by $0.07. The firm had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.22 billion. Tri Pointe Homes had a return on equity of 14.34% and a net margin of 10.36%. On average, sell-side analysts anticipate that Tri Pointe Homes will post 4.8 earnings per share for the current fiscal year.

Tri Pointe Homes announced that its Board of Directors has authorized a stock repurchase program on Wednesday, December 18th that allows the company to buyback $250.00 million in shares. This buyback authorization allows the construction company to buy up to 7.3% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board believes its shares are undervalued.

Insider Transactions at Tri Pointe Homes

In other 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 transaction of $3,029,583.60. Following the completion of the sale, the chief operating officer now owns 708,159 shares in the company, valued at approximately $27,724,424.85. This represents a 9.85 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Tri Pointe Homes

Several hedge funds have recently made changes to their positions in TPH. Pacer Advisors Inc. acquired a new stake in shares of Tri Pointe Homes during the fourth quarter worth about $118,407,000. Castlekeep Investment Advisors LLC acquired a new stake in shares of Tri Pointe Homes during the fourth quarter worth about $60,261,000. Assenagon Asset Management S.A. boosted its stake in shares of Tri Pointe Homes by 260.8% during the third quarter. Assenagon Asset Management S.A. now owns 1,417,263 shares of the construction company’s stock worth $64,216,000 after buying an additional 1,024,425 shares during the period. Norges Bank acquired a new stake in shares of Tri Pointe Homes during the fourth quarter worth about $14,815,000. Finally, Raymond James Financial Inc. acquired a new stake in shares of Tri Pointe Homes during the fourth quarter worth about $13,342,000. Institutional investors and hedge funds own 97.01% of the company’s stock.

Tri Pointe Homes Company Profile

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.