Tri Pointe Homes (NYSE:TPH) Lowered to Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen has downgraded Tri Pointe Homes (NYSE:TPH) from a "hold" rating to a "sell" rating, indicating concerns about the company's stock performance.
• Tri Pointe Homes reported a net margin of 9.22% in its latest earnings, but its quarterly revenue was down 22.3% year-over-year, raising alarms among analysts.
• The company has authorized a $50 million stock buyback plan, a move typically seen as a signal that management believes its shares are undervalued.

Wall Street Zen downgraded shares of Tri Pointe Homes (NYSE:TPH - Free Report) from a hold rating to a sell rating in a research note published on Saturday.

Several other analysts have also recently issued reports on TPH. Wedbush reaffirmed an "outperform" rating and set a $43.00 target price on shares of Tri Pointe Homes in a research report on Friday. Evercore ISI dropped their target price on Tri Pointe Homes from $39.00 to $38.00 and set an "outperform" rating on the stock in a research report on Friday. One investment analyst has rated the stock with a sell rating, three have given a hold rating, three have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $40.80.

Tri Pointe Homes Trading Up 0.0%

NYSE:TPH traded up $0.01 during midday trading on Friday, hitting $31.65. The stock had a trading volume of 251,418 shares, compared to its average volume of 1,022,758. Tri Pointe Homes has a one year low of $27.90 and a one year high of $47.07. The company has a market capitalization of $2.87 billion, a price-to-earnings ratio of 8.05, a PEG ratio of 0.82 and a beta of 1.25. The stock has a 50-day moving average of $31.64 and a 200 day moving average of $32.34. The company has a quick ratio of 1.79, a current ratio of 1.79 and a debt-to-equity ratio of 0.28.

Tri Pointe Homes (NYSE:TPH - Get Free Report) last announced its quarterly earnings data 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 analysts' expectations of $810.77 million. During the same quarter in the prior year, the firm earned $1.25 earnings per share. Tri Pointe Homes's revenue was down 22.3% compared to the same quarter last year. As a group, sell-side analysts forecast that Tri Pointe Homes will post 3.58 EPS for the current year.

Tri Pointe Homes announced that its Board of Directors has approved a stock repurchase plan on Thursday, July 24th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the construction company to buy up to 1.6% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its stock is undervalued.

Institutional Trading of Tri Pointe Homes

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Moran Wealth Management LLC purchased a new stake in shares of Tri Pointe Homes during the 2nd quarter valued at $2,143,000. CWM LLC lifted its holdings in shares of Tri Pointe Homes by 1,190.9% during the 2nd quarter. CWM LLC now owns 49,017 shares of the construction company's stock valued at $1,566,000 after purchasing an additional 45,220 shares during the last quarter. Inspire Investing LLC lifted its holdings in shares of Tri Pointe Homes by 16.1% during the 2nd quarter. Inspire Investing LLC now owns 14,689 shares of the construction company's stock valued at $469,000 after purchasing an additional 2,037 shares during the last quarter. Blue Trust Inc. lifted its holdings in shares of Tri Pointe Homes by 16.6% during the 2nd quarter. Blue Trust Inc. now owns 2,982 shares of the construction company's stock valued at $95,000 after purchasing an additional 424 shares during the last quarter. Finally, Belpointe Asset Management LLC raised its stake in Tri Pointe Homes by 24.9% in the 2nd quarter. Belpointe Asset Management LLC now owns 12,730 shares of the construction company's stock worth $407,000 after acquiring an additional 2,541 shares during the last quarter. Hedge funds and other institutional investors 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.