Tri Pointe Homes (NYSE:TPH) Cut to “Sector Perform” at Royal Bank of Canada

Royal Bank of Canada cut shares of Tri Pointe Homes (NYSE:TPH) from an outperform rating to a sector perform rating in a research report report published on Wednesday, MarketBeat.com reports. They currently have $37.00 price target on the construction company’s stock, down from their previous price target of $41.00.

TPH has been the topic of a number of other research reports. Oppenheimer lowered their target price on Tri Pointe Homes from $56.00 to $53.00 and set an “outperform” rating on the stock in a report on Friday, October 25th. StockNews.com cut Tri Pointe Homes from a “buy” rating to a “hold” rating in a research report on Tuesday, December 17th. Finally, Wedbush reissued a “neutral” rating and set a $38.00 price target (down from $44.00) on shares of Tri Pointe Homes in a research note on Tuesday. Four investment analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $40.60.

Tri Pointe Homes Price Performance

Shares of Tri Pointe Homes stock opened at $30.79 on Wednesday. The company has a debt-to-equity ratio of 0.28, a current ratio of 2.24 and a quick ratio of 1.64. Tri Pointe Homes has a one year low of $30.25 and a one year high of $47.78. The stock has a market capitalization of $2.88 billion, a P/E ratio of 6.37, a price-to-earnings-growth ratio of 0.49 and a beta of 1.64. The business’s 50 day simple moving average is $36.32 and its two-hundred day simple moving average is $40.63.

Tri Pointe Homes (NYSE:TPH) last issued its quarterly earnings results on Tuesday, February 18th. The construction company reported $1.37 earnings per share for the quarter, topping the consensus estimate of $1.30 by $0.07. The company had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.22 billion. Tri Pointe Homes had a return on equity of 14.34% and a net margin of 10.36%. Analysts forecast that Tri Pointe Homes will post 4.8 EPS for the current year.

Tri Pointe Homes declared that its Board of Directors has authorized a stock buyback plan on Wednesday, December 18th that allows the company to repurchase $250.00 million in shares. This repurchase authorization allows the construction company to reacquire up to 7.3% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.

Insider Activity at Tri Pointe Homes

In other news, COO Thomas J. Mitchell sold 77,384 shares of the company’s stock in a transaction that occurred on Monday, December 16th. The stock was sold at an average price of $39.15, for a total value of $3,029,583.60. Following the completion of the sale, the chief operating officer now directly owns 708,159 shares in the company, valued at $27,724,424.85. This represents a 9.85 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 2.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in TPH. Covestor Ltd lifted its holdings in Tri Pointe Homes by 58.5% in the fourth quarter. Covestor Ltd now owns 908 shares of the construction company’s stock valued at $33,000 after acquiring an additional 335 shares during the last quarter. Reston Wealth Management LLC acquired a new position in Tri Pointe Homes during the third quarter worth $45,000. Smartleaf Asset Management LLC lifted its stake in Tri Pointe Homes by 84.4% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,339 shares of the construction company’s stock worth $49,000 after purchasing an additional 613 shares in the last quarter. Assetmark Inc. lifted its stake in Tri Pointe Homes by 19.6% during the fourth quarter. Assetmark Inc. now owns 1,827 shares of the construction company’s stock worth $66,000 after purchasing an additional 300 shares in the last quarter. Finally, Sterling Capital Management LLC lifted its stake in Tri Pointe Homes by 729.5% during the fourth quarter. Sterling Capital Management LLC now owns 2,082 shares of the construction company’s stock worth $75,000 after purchasing an additional 1,831 shares in the last quarter. 97.01% of the stock is currently owned by institutional investors and hedge funds.

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.