CEO Taylor Morrison is selling more than $3.5 million in shares of the company to Investing.com

In a recent transaction, William H. Lyon, principal at Taylor Morrison Home Corp. (NYSE: ), sold a significant portion of its holdings in the company. The sale, which took place on September 18, 2024, involved 49,928 shares of common stock at an average price of $70.25, resulting in a total value of approximately $3.5 million.

Shares were sold in multiple trades with prices ranging from $70.00 to $71.03. According to a footnote in the filing, the transactions were executed pursuant to a Rule 10b5-1 plan, which was established on March 15, 2024. This plan allows company insiders to set a predetermined schedule for buying or selling actions at a time when they are not in possession of material non-public information. As such, Lyon had no discretion over the timing of these sales.

Following the sale, Lyon still owns a substantial amount of Taylor Morrison shares indirectly through various entities. The shares sold were owned by Lyon LLC, and the reporting document clarifies that Lyon has voting and investment power over these securities because he is the trustee of Lyon LLC and the trustee of the associated Lyon Trusts, which are the beneficiaries of the shares. In addition, Lyon is also a trustee of the Lyon Separate Property Trust, which holds additional shares.

Investors often monitor insider trading for information about how corporate executives view a stock’s value and prospects. While the sale of stock by an insider may raise questions among investors, using a 10b5-1 Plan can provide assurance that the transactions were not based on any material recent or future information that has not been publicly disclosed.

Taylor Morrison Home Corp., based in Scottsdale, Arizona, operates in the real estate and construction industry and is known for its work as an operative builder. The company’s stock is publicly traded on the New York Stock Exchange under the symbol TMHC.

In other recent news, Taylor Morrison Home Corporation has made significant progress in the market. The homebuilder entered into an accelerated share repurchase agreement with JPMorgan Chase (NYSE: ) Bank to buy back $50 million of its common stock. The move is part of Taylor Morrison’s previously disclosed $500 million share buyback program, signaling the company’s commitment to returning value to its shareholders.

In the area of ​​analyst ratings, Taylor Morrison saw favorable ratings. BTIG upgraded the company from Neutral to Buy and set a $78.00 target price. This decision follows investor meetings with the company’s management, which increased BTIG’s confidence in Taylor Morrison’s long-term growth strategy. RBC Capital Markets also maintained an Outperform rating on Taylor Morrison, raising its price target to $74 from $63.

Financially, Taylor Morrison’s performance in the second quarter of 2024 exceeded expectations. The company reported adjusted earnings of $1.97 per diluted share and net income of $199 million for the quarter. The homebuilder delivered 3,200 homes at an average price of $600,000 and posted a 12% year-over-year increase in book value per share.

Looking ahead, Taylor Morrison expects to deliver between 12,600 and 12,800 homes in 2024, with an estimated full-year land investment of between $2.3 billion and $2.5 billion. These recent developments point to a positive trajectory for Taylor Morrison, despite potential challenges such as batch cost inflation and a gross order cancellation rate of 9.4%.

InvestingPro Insights

Amid news of William H. Lyon’s stock sale, Taylor Morrison Home Corp. (NYSE:TMHC) continues to show financial strength in several areas, according to recent data from InvestingPro. The company’s market capitalization stands at $7.49 billion, highlighting its significant presence in the real estate and construction sector. Furthermore, with a P/E ratio of 10.42 and an adjusted P/E ratio for the trailing twelve months starting Q2 2024 of 9.62, TMHC shows a relatively attractive valuation relative to its earnings.

InvestingPro Tips suggests that TMHC’s share price movements have been quite volatile, which may be of interest to investors looking for dynamic trading opportunities. Furthermore, the company has not only posted a high return over the past year, but also boasted a strong return over the past three months, indicating a positive near-term performance trend. These returns are particularly noteworthy given that TMHC is trading near its 52-week high, with the price at 99.87% of that peak. In particular, analysts included in InvestingPro’s advice predict that the company will continue to be profitable this year, which could give investors more confidence.

For those interested in deeper analysis and additional insights, there are 9 more InvestingPro tips available for TMHC, which can be found at https://www.investing.com/pro/TMHC. These tips can give investors a more comprehensive understanding of the company’s financial health and market position.

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