Tri Pointe Homes Inc. (NYSE:TPH) Given Average Recommendation of "Moderate Buy" by Brokerages

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 received a consensus recommendation of "Moderate Buy" from the seven ratings firms that are presently covering the firm, MarketBeat reports. Three investment analysts have rated the stock with a hold recommendation, three have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $40.80.

Several brokerages have recently weighed in on TPH. Wedbush reissued an "outperform" rating and issued a $43.00 price target on shares of Tri Pointe Homes in a research note on Friday, July 25th. Evercore ISI reduced their price objective on Tri Pointe Homes from $39.00 to $38.00 and set an "outperform" rating for the company in a research note on Friday, July 25th. Wolfe Research lowered Tri Pointe Homes from an "outperform" rating to a "peer perform" rating in a report on Sunday, July 27th. Finally, Wall Street Zen lowered Tri Pointe Homes from a "hold" rating to a "sell" rating in a report on Saturday, July 26th.

Tri Pointe Homes Stock Performance

NYSE TPH traded down $0.54 on Wednesday, reaching $35.10. The stock had a trading volume of 1,215,892 shares, compared to its average volume of 1,301,988. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.79 and a quick ratio of 1.79. The firm has a fifty day moving average of $32.39 and a two-hundred day moving average of $32.03. Tri Pointe Homes has a 1-year low of $27.90 and a 1-year high of $46.91. The company has a market cap of $3.18 billion, a P/E ratio of 8.93, a price-to-earnings-growth ratio of 0.97 and a beta of 1.22.

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

Tri Pointe Homes declared that its board has approved a stock buyback program on Thursday, July 24th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the construction company to purchase up to 1.6% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

Hedge Funds Weigh In On Tri Pointe Homes

Several hedge funds and other institutional investors have recently added to or reduced their stakes in TPH. Wells Fargo & Company MN lifted its stake in Tri Pointe Homes by 24.9% during the fourth quarter. Wells Fargo & Company MN now owns 53,413 shares of the construction company's stock worth $1,937,000 after purchasing an additional 10,650 shares during the last quarter. Bank of Montreal Can lifted its stake in shares of Tri Pointe Homes by 9.6% in the 4th quarter. Bank of Montreal Can now owns 12,256 shares of the construction company's stock valued at $444,000 after acquiring an additional 1,078 shares during the last quarter. Invesco Ltd. lifted its stake in shares of Tri Pointe Homes by 12.4% in the 4th quarter. Invesco Ltd. now owns 1,068,073 shares of the construction company's stock valued at $38,728,000 after acquiring an additional 118,204 shares during the last quarter. Capital Fund Management S.A. raised its position in Tri Pointe Homes by 13.3% during the 4th quarter. Capital Fund Management S.A. now owns 29,489 shares of the construction company's stock valued at $1,069,000 after purchasing an additional 3,471 shares during the last quarter. Finally, Covestor Ltd raised its position in Tri Pointe Homes by 58.5% during the 4th quarter. Covestor Ltd now owns 908 shares of the construction company's stock valued at $33,000 after purchasing an additional 335 shares during the last quarter. 97.01% of the stock is currently owned by hedge funds and other institutional investors.

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.