Share Buyback Plan Declared by Taylor Wimpey (LON:TW) Board of Directors

Key Points

• Taylor Wimpey's board has approved a share buyback program authorizing open‑market repurchases, a move that typically signals the board views the shares as undervalued.
• Analysts hold a consensus "Moderate Buy" rating with an average target price of GBX 125.33; the stock recently traded at GBX 101.90 and the company has a market cap of £3.66 billion.
• Insiders have been buying shares—Mark Castle purchased 2,267 shares at GBX 102 and insiders acquired 3,117 shares last quarter, with insiders owning about 0.87% of the stock.

Taylor Wimpey (LON:TW - Get Free Report) declared that its Board of Directors has approved a share buyback plan on Thursday, March 5th, RTT News reports. The company plans to repurchase 0 outstanding shares. This repurchase authorization permits the homebuilder to purchase shares of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board believes its shares are undervalued.

Analyst Ratings Changes

Several equities analysts have recently weighed in on TW shares. Stifel Nicolaus reiterated a "buy" rating and set a GBX 120 price objective on shares of Taylor Wimpey in a report on Thursday. Royal Bank Of Canada reiterated an "outperform" rating and issued a GBX 150 price target on shares of Taylor Wimpey in a research note on Friday, January 16th. Citigroup lowered their target price on shares of Taylor Wimpey from GBX 143 to GBX 137 and set a "buy" rating on the stock in a report on Friday, January 16th. The Goldman Sachs Group assumed coverage on Taylor Wimpey in a report on Monday, November 24th. They issued a "neutral" rating and a GBX 109 target price on the stock. Finally, JPMorgan Chase & Co. lowered their target price on Taylor Wimpey from GBX 140 to GBX 120 and set a "neutral" rating for the company in a report on Thursday, December 4th. Five analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of GBX 125.33.

Taylor Wimpey Stock Performance

TW traded down GBX 2.75 during trading on Thursday, reaching GBX 101.90. The stock had a trading volume of 36,380,893 shares, compared to its average volume of 2,409,451. The firm's 50 day moving average is GBX 109.13 and its 200-day moving average is GBX 104.32. The company has a current ratio of 4.58, a quick ratio of 0.71 and a debt-to-equity ratio of 2.94. The stock has a market capitalization of £3.66 billion, a PE ratio of 14.87, a PEG ratio of 2.04 and a beta of 1.35.

Taylor Wimpey (LON:TW - Get Free Report) last announced its earnings results on Thursday, March 5th. The homebuilder reported GBX 8 earnings per share for the quarter. Taylor Wimpey had a net margin of 2.40% and a return on equity of 1.97%. Equities research analysts forecast that Taylor Wimpey will post 9.8339265 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Mark Castle bought 2,267 shares of the company's stock in a transaction that occurred on Monday, December 15th. The stock was bought at an average price of GBX 102 per share, with a total value of £2,312.34. Insiders acquired 3,117 shares of company stock worth $321,270 in the last quarter. 0.87% of the stock is currently owned by insiders.

Taylor Wimpey Company Profile

Taylor Wimpey plc operates as a homebuilder in the United Kingdom and Spain. It builds and delivers various homes and communities. Taylor Wimpey plc was incorporated in 1935 and is based in High Wycombe, the United Kingdom.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.