Brokerages Set Tri Pointe Homes Inc. (NYSE:TPH) PT at $40.80

Key Points

• Analysts have given Tri Pointe Homes Inc. a consensus recommendation of "Moderate Buy" with a twelve-month price target averaging $40.80.
• Despite reporting earnings of $0.77 per share, Tri Pointe Homes experienced a 22.3% year-over-year decline in revenue, totaling $884.01 million for the quarter.
• The company has authorized a $50 million share buyback plan, signaling management’s belief that the company’s stock is undervalued.

Tri Pointe Homes Inc. (NYSE:TPH - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the seven analysts that are currently covering the stock, Marketbeat.com reports. Three equities research analysts have rated the stock with a hold recommendation, three have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price objective among brokers that have covered the stock in the last year is $40.80.

A number of research firms recently issued reports on TPH. 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 downgraded shares of Tri Pointe Homes from an "outperform" rating to a "peer perform" rating in a research report on Sunday, July 27th. Wall Street Zen downgraded shares of Tri Pointe Homes from a "hold" rating to a "sell" rating in a research report on Saturday, July 26th. Finally, Evercore ISI decreased 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.

Tri Pointe Homes Stock Performance

Shares of NYSE:TPH traded down $0.06 on Wednesday, hitting $35.03. 897,169 shares of the company were exchanged, compared to its average volume of 1,303,184. Tri Pointe Homes has a 1-year low of $27.90 and a 1-year high of $46.91. The stock's 50 day moving average price is $32.49 and its 200 day moving average price is $31.97. 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 firm has a market capitalization of $3.18 billion, a P/E ratio of 8.91, a price-to-earnings-growth ratio of 0.95 and a beta of 1.22.

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

Tri Pointe Homes declared that its board has authorized a share repurchase plan on Thursday, July 24th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the construction company to buy up to 1.6% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board believes its shares are undervalued.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sumitomo Mitsui Trust Group Inc. increased its stake in shares of Tri Pointe Homes by 9.4% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 9,272 shares of the construction company's stock worth $296,000 after purchasing an additional 800 shares in the last quarter. Wealth Enhancement Advisory Services LLC increased its stake in shares of Tri Pointe Homes by 57.4% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 7,880 shares of the construction company's stock worth $252,000 after purchasing an additional 2,875 shares in the last quarter. Principal Financial Group Inc. increased its stake in shares of Tri Pointe Homes by 2.9% during the first quarter. Principal Financial Group Inc. now owns 500,398 shares of the construction company's stock worth $15,973,000 after purchasing an additional 14,298 shares in the last quarter. SG Americas Securities LLC purchased a new stake in shares of Tri Pointe Homes during the first quarter worth about $300,000. Finally, Oppenheimer Asset Management Inc. increased its stake in shares of Tri Pointe Homes by 3.0% during the first quarter. Oppenheimer Asset Management Inc. now owns 27,396 shares of the construction company's stock worth $874,000 after purchasing an additional 801 shares in the last quarter. Hedge funds and other institutional investors own 97.01% of the company's stock.

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.