Hotchkis & Wiley Capital Management LLC Lowers Position in Tri Pointe Homes Inc. $TPH

Key Points

• Hotchkis & Wiley Capital Management LLC has reduced its stake in Tri Pointe Homes by 10.1%, now holding approximately 272,774 shares valued at $8.71 million.
• Tri Pointe Homes reported $0.77 earnings per share for its latest quarter, surpassing analyst expectations, but its revenue declined 22.3% year-over-year.
• The company has initiated a $50 million stock repurchase program, reflecting the board's belief that its shares are currently undervalued.

Hotchkis & Wiley Capital Management LLC lowered its holdings in shares of Tri Pointe Homes Inc. (NYSE:TPH - Free Report) by 10.1% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 272,774 shares of the construction company's stock after selling 30,498 shares during the period. Hotchkis & Wiley Capital Management LLC owned about 0.30% of Tri Pointe Homes worth $8,707,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. American Century Companies Inc. raised its position in Tri Pointe Homes by 13.5% during the first quarter. American Century Companies Inc. now owns 2,209,166 shares of the construction company's stock worth $70,517,000 after acquiring an additional 262,695 shares during the last quarter. LSV Asset Management raised its position in Tri Pointe Homes by 4.8% during the first quarter. LSV Asset Management now owns 1,762,922 shares of the construction company's stock worth $56,272,000 after acquiring an additional 80,198 shares during the last quarter. Nuveen Asset Management LLC raised its position in Tri Pointe Homes by 3.0% during the fourth quarter. Nuveen Asset Management LLC now owns 1,736,288 shares of the construction company's stock worth $62,958,000 after acquiring an additional 49,916 shares during the last quarter. Castlekeep Investment Advisors LLC acquired a new position in Tri Pointe Homes during the fourth quarter worth about $60,261,000. Finally, Nuveen LLC acquired a new position in Tri Pointe Homes during the first quarter worth about $43,906,000. Institutional investors and hedge funds own 97.01% of the company's stock.

Wall Street Analysts Forecast Growth

TPH has been the subject of a number of research reports. Wedbush restated an "outperform" rating and set a $43.00 target price on shares of Tri Pointe Homes in a research report on Friday, July 25th. Wolfe Research cut shares of Tri Pointe Homes from an "outperform" rating to a "peer perform" rating in a research report on Sunday, July 27th. Evercore ISI cut their target price on shares of Tri Pointe Homes from $39.00 to $38.00 and set an "outperform" rating for the company in a research report on Friday, July 25th. Finally, Wall Street Zen upgraded shares of Tri Pointe Homes from a "sell" rating to a "hold" rating in a research report on Saturday. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $40.80.

Tri Pointe Homes Trading Down 0.0%

Shares of NYSE TPH traded down $0.01 during midday trading on Friday, reaching $35.30. 591,329 shares of the stock were exchanged, compared to its average volume of 1,066,950. The company has a market capitalization of $3.20 billion, a P/E ratio of 8.98, a P/E/G ratio of 0.96 and a beta of 1.22. Tri Pointe Homes Inc. has a 52-week low of $27.90 and a 52-week high of $46.91. The company has a current ratio of 1.79, a quick ratio of 1.79 and a debt-to-equity ratio of 0.28. The stock has a 50 day moving average price of $33.39 and a 200-day moving average price of $31.90.

Tri Pointe Homes (NYSE:TPH - Get Free Report) last issued its quarterly earnings results on Thursday, July 24th. The construction company reported $0.77 EPS for the quarter, topping analysts' consensus estimates of $0.66 by $0.11. The business had revenue of $884.01 million during the quarter, compared to the consensus estimate of $810.77 million. Tri Pointe Homes had a net margin of 9.22% and a return on equity of 11.33%. The company's quarterly revenue was down 22.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.25 earnings per share. Equities research analysts expect that Tri Pointe Homes Inc. will post 3.58 earnings per share for the current fiscal year.

Tri Pointe Homes announced that its board has initiated a share repurchase plan on Thursday, July 24th that authorizes the company to repurchase $50.00 million in shares. This repurchase authorization authorizes the construction company to repurchase up to 1.6% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board believes its shares are undervalued.

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.