Taylor Morrison Home Corp (NYSE:TMHC) director William H. Lyon has sold a significant portion of his holdings in the company, according to a recent filing with the Securities and Exchange Commission. The transactions, which took place on March 28, 2024, involved the sale of 153,000 shares of common stock, resulting in proceeds of over $9.5 million.
The shares were sold in multiple transactions with prices ranging from $62.03 to $62.65. Specifically, 150,000 shares were sold at an average price of $62.33, and an additional 3,000 shares were sold at an average price of $62.03. These sales were executed as part of a pre-arranged trading plan under Rule 10b5-1, which allows insiders to sell shares at predetermined times to avoid accusations of trading on nonpublic information.
Following the transactions, Lyon still maintains a substantial interest in Taylor Morrison, with direct and indirect holdings through trusts and LLCs. The SEC filing disclosed that shares sold were held indirectly by Lyon through entities such as Lyon Shareholder 2012, LLC and the Lyon Separate Property Trust, for which he serves as manager and trustee, respectively.
Investors often monitor insider transactions for insights into management's perspective on the company's valuation and future prospects. The sale by a director can be interpreted in various ways, but without additional context, it is merely a factual report of a transaction.
Taylor Morrison Home Corp, headquartered in Scottsdale, Arizona, operates in the real estate and construction sector, specializing in building homes and communities. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol TMHC.
InvestingPro Insights
Amidst the news of director William H. Lyon's significant share sale, Taylor Morrison Home Corp (NYSE:TMHC) continues to show robust financial metrics and market performance. The company's market capitalization stands at a solid $6.62 billion, reflecting investor confidence in its business model and market position. Moreover, Taylor Morrison's attractive price-to-earnings (P/E) ratio of 8.79, which adjusts down to 8.12 when looking at the last twelve months as of Q4 2023, suggests a potentially undervalued stock in comparison to industry peers.
InvestingPro Tips highlight that four analysts have recently revised their earnings estimates upwards for the upcoming period, indicating a positive outlook on the company's financial performance. Additionally, the stock has experienced a strong return over the last year with an impressive 68.94% price total return, and it's currently trading near its 52-week high at 99.25% of the peak price. This momentum is further evidenced by a significant price uptick over the last six months, with a 45.9% return in that period.
Investors interested in deeper analysis can explore more InvestingPro Tips, which include insights on Taylor Morrison's debt levels, liquidity, and profitability. With the company operating with a moderate level of debt and its liquid assets exceeding short-term obligations, financial stability appears to be a strength for Taylor Morrison. Additionally, analysts predict profitability for the year, supported by the fact that the company has been profitable over the last twelve months.
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