Tri Pointe Homes, Inc. (NYSE:TPH) Sees Significant Drop in Short Interest

Tri Pointe Homes, Inc. (NYSE:TPH) was the target of a large drop in short interest in February. As of February 28th, there was short interest totalling 3,000,000 shares, a drop of 24.2% from the February 13th total of 3,960,000 shares. Approximately 3.4% of the shares of the stock are short sold. Based on an average trading volume of 944,100 shares, the days-to-cover ratio is presently 3.2 days.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on TPH shares. StockNews.com lowered Tri Pointe Homes from a “buy” rating to a “hold” rating in a research note on Tuesday, December 17th. Oppenheimer reduced their price objective on Tri Pointe Homes from $53.00 to $43.00 and set an “outperform” rating for the company in a research note on Wednesday, February 19th. Royal Bank of Canada lowered Tri Pointe Homes from an “outperform” rating to a “sector perform” rating and reduced their target price for the company from $41.00 to $37.00 in a report on Wednesday, February 19th. Seaport Res Ptn upgraded Tri Pointe Homes from a “hold” rating to a “strong-buy” rating in a report on Thursday, March 6th. Finally, Wedbush restated a “neutral” rating and issued a $38.00 target price (down previously from $44.00) on shares of Tri Pointe Homes in a report on Tuesday, February 18th. Four investment analysts have rated the stock with a hold rating, two have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $40.60.

Tri Pointe Homes Price Performance

Shares of NYSE:TPH opened at $31.35 on Wednesday. The company has a current ratio of 2.24, a quick ratio of 1.64 and a debt-to-equity ratio of 0.28. Tri Pointe Homes has a 1 year low of $30.25 and a 1 year high of $47.78. The business has a fifty day simple moving average of $34.49 and a 200 day simple moving average of $39.25. The firm has a market cap of $2.88 billion, a price-to-earnings ratio of 6.49, a P/E/G ratio of 0.67 and a beta of 1.71.

Tri Pointe Homes (NYSE:TPH) last announced its quarterly earnings data on Tuesday, February 18th. The construction company reported $1.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.30 by $0.07. Tri Pointe Homes had a return on equity of 14.34% and a net margin of 10.36%. The business had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.22 billion. As a group, sell-side analysts predict that Tri Pointe Homes will post 3.58 earnings per share for the current fiscal year.

Tri Pointe Homes announced that its Board of Directors has initiated a stock buyback program on Wednesday, December 18th that permits the company to buyback $250.00 million in shares. This buyback authorization permits the construction company to purchase up to 7.3% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its shares are undervalued.

Institutional Trading of Tri Pointe Homes

Several hedge funds and other institutional investors have recently modified their holdings of TPH. Pacer Advisors Inc. purchased a new stake in shares of Tri Pointe Homes during the fourth quarter worth $118,407,000. Castlekeep Investment Advisors LLC bought a new position in Tri Pointe Homes during the fourth quarter valued at about $60,261,000. Norges Bank bought a new position in Tri Pointe Homes during the fourth quarter valued at about $14,815,000. Raymond James Financial Inc. bought a new position in Tri Pointe Homes during the fourth quarter valued at about $13,342,000. Finally, Weiss Asset Management LP bought a new position in Tri Pointe Homes during the third quarter valued at about $16,066,000. 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.