Tri Pointe Homes (NYSE:TPH) Shares Gap Down – Time to Sell?

Tri Pointe Homes, Inc. (NYSE:TPH)’s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $32.28, but opened at $31.00. Tri Pointe Homes shares last traded at $31.63, with a volume of 108,549 shares traded.

Wall Street Analyst Weigh In

TPH has been the topic of several research reports. Wedbush reissued a “neutral” rating and issued a $38.00 price target (down previously from $44.00) on shares of Tri Pointe Homes in a research report on Tuesday. Oppenheimer lowered their target price on shares of Tri Pointe Homes from $56.00 to $53.00 and set an “outperform” rating on the stock in a report on Friday, October 25th. Royal Bank of Canada lowered Tri Pointe Homes from an “outperform” rating to a “sector perform” rating and cut their price target for the stock from $41.00 to $37.00 in a report on Wednesday. Finally, StockNews.com lowered Tri Pointe Homes from a “buy” rating to a “hold” rating in a research note on Tuesday, December 17th. Four research analysts have rated the stock with a hold rating, one has assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, Tri Pointe Homes currently has an average rating of “Moderate Buy” and an average price target of $42.75.

Tri Pointe Homes Price Performance

The stock has a market capitalization of $2.88 billion, a PE ratio of 6.37, a price-to-earnings-growth ratio of 0.58 and a beta of 1.64. The business’s 50-day moving average price is $36.69 and its 200 day moving average price is $40.76. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.64 and a current ratio of 1.64.

Tri Pointe Homes (NYSE:TPH) last issued its quarterly earnings data on Tuesday, February 18th. The construction company reported $1.37 EPS for the quarter, topping the consensus estimate of $1.30 by $0.07. Tri Pointe Homes had a return on equity of 14.83% and a net margin of 10.41%. The company had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.22 billion. Research analysts forecast that Tri Pointe Homes, Inc. will post 4.72 earnings per share for the current year.

Tri Pointe Homes announced that its board has authorized a stock buyback plan on Wednesday, December 18th that authorizes the company to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the construction company to buy up to 7.3% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Insider Transactions at Tri Pointe Homes

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

Hedge Funds Weigh In On Tri Pointe Homes

Several institutional investors and hedge funds have recently made changes to their positions in the business. PharVision Advisers LLC purchased a new stake in Tri Pointe Homes during the fourth quarter valued at about $242,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Tri Pointe Homes by 20.7% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 284,527 shares of the construction company’s stock valued at $10,317,000 after acquiring an additional 48,857 shares during the period. Voloridge Investment Management LLC grew its position in Tri Pointe Homes by 44.9% during the 4th quarter. Voloridge Investment Management LLC now owns 495,976 shares of the construction company’s stock worth $17,984,000 after acquiring an additional 153,758 shares during the last quarter. Squarepoint Ops LLC purchased a new position in Tri Pointe Homes in the 4th quarter worth approximately $1,130,000. Finally, Two Sigma Advisers LP lifted its position in Tri Pointe Homes by 11.2% in the fourth quarter. Two Sigma Advisers LP now owns 629,400 shares of the construction company’s stock valued at $22,822,000 after purchasing an additional 63,300 shares during the last quarter. 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.