Taylor Morrison Home Prepares for Buyback Program with $500M Investment
December 16, 2023
🌥️Trending News
Taylor Morrison Home ($NYSE:TMHC) has announced a major investment in its buyback program, injecting $500 million to strengthen the initiative. Taylor Morrison Home is a national homebuilder and leading developer of single-family, attached, and multi-family homes. Its portfolio includes new home communities in some of the most sought-after locations in the United States. With its $500 million investment, Taylor Morrison Home will be able to buy back more of its own stock, potentially creating a higher return on investment for shareholders. The company believes this will help drive its growth both in the short and long term.
It is also expected to provide greater stability for investors by increasing the value of its stock and allowing it to offer more attractive dividends. By investing in its own stock, Taylor Morrison Home is signaling confidence in its performance and potential as a homebuilder. This move could help to boost investor confidence and create additional value for shareholders.
Share Price
On Friday, Taylor Morrison Home stock opened at $52.3 and closed at $51.4, representing a 1.9% decrease from its previous closing price of $52.4. The drop follows news that the homebuilding company is preparing to invest $500M into a buyback program. Taylor Morrison Home will use the funds to buy back shares in order to improve shareholder value and increase the company’s long-term financial stability.
In addition, the reduction in outstanding common stock will have a positive effect on the company’s earnings per share and overall profitability. Taylor Morrison Home’s investment is a testament to its commitment to provide shareholders with long-term value and stability and is a positive step toward future growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for TMHC. More…
| Total Revenues | Net Income | Net Margin |
| 7.89k | 871.67 | 11.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for TMHC. More…
| Operations | Investing | Financing |
| 1.2k | -90.18 | -823.41 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for TMHC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.44k | 3.26k | 48.01 |
Key Ratios Snapshot
Some of the financial key ratios for TMHC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.3% | 46.1% | 15.3% |
| FCF Margin | ROE | ROA |
| 14.5% | 14.7% | 8.9% |
Analysis
At GoodWhale, we recently conducted an analysis of the financials of TAYLOR MORRISON HOME. Based on our Star Chart analysis, we concluded that TAYLOR MORRISON HOME is strong in asset, growth, and medium in profitability and weak in dividend. We classified them as a ‘rhino’ type of company. This means that the company has achieved moderate revenue or earnings growth. As a high health score of 10/10 was given to TAYLOR MORRISON HOME considering its cashflows and debt, this might be attractive to investors looking to invest in a company that is capable of safely riding out any crisis without the risk of bankruptcy. Investors looking for steady returns could also find TAYLOR MORRISON HOME attractive. Investing in a company such as this could provide them with a steady stream of income due to its low dividend payments. In addition, they could benefit from any potential future growth of the company. More…
Peers
The homebuilding industry is highly competitive, with many large and small companies vying for market share. Among the largest builders are Taylor Morrison Home Corp, KB Home, Meritage Homes Corp, and Beazer Homes USA Inc. These companies compete on a variety of fronts, including price, product offerings, customer service, and geographic focus.
– KB Home ($NYSE:KBH)
KB Home is a homebuilding company that was founded in 1957. The company has a market cap of $2.46 billion and a return on equity of 18.25%. KB Home builds and sells both single-family and multi-family homes in the United States. The company has operations in 35 markets across nine states.
– Meritage Homes Corp ($NYSE:MTH)
Meritage Homes is a homebuilding company that was founded in 1985 and is headquartered in Scottsdale, Arizona. The company builds and sells single-family homes and multi-family homes in the United States. As of 2022, the company has a market cap of 2.65 billion and a return on equity of 22.62%. The company operates in over 50 markets across the United States and has built over 115,000 homes since its inception. Meritage Homes is a publicly-traded company and its stock is listed on the New York Stock Exchange.
– Beazer Homes USA Inc ($NYSE:BZH)
Beazer Homes USA Inc is a homebuilder that operates in the United States. The company has a market capitalization of $345.59 million and a return on equity of 15.8%. Beazer Homes builds and sells single-family homes, townhomes, and condominiums. The company operates in Arizona, California, Colorado, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia.
Summary
Taylor Morrison Home, a leading U.S. homebuilder, has announced the launch of a new $500 million stock repurchase program. This program is intended to help enhance shareholder value by repurchasing common stock of the company on the open market or in private transactions from time to time. The stock repurchase will be funded from the company’s existing cash balances and, when completed, will reduce the total number of shares outstanding.
This move demonstrates management’s belief that their stock is undervalued and provides investors with an opportunity to benefit from potentially higher stock prices. Taylor Morrison Home will also continue to explore various other options to return value to shareholders.
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