| Yesterday | ||||
Shares of U.S. home… Shares of U.S. home builders are resuming their rally mode on Wednesday after the U.S Commerce Department reported residential construction data for January. Construction on new homes dropped 3.6% in January, but permits rose to 1,551,000, a nearly 13-year high, boding well for new home construction in 2020. TRI POINTE REPORT: On Tuesday evening, residential construction company TRI Pointe Group (TPH), reported fourth quarter results that beat analysts' consensus views. Earnings per share for the quarter of 85c per share was higher than the 70c per share in the prior-year quarter and 70c consensus. TRI Pointe Group CEO Doug Bauer commented on the quarter that "Demand was consistent throughout the quarter and broad-based across the country, as each of our brands posted year-over-year order growth in excess of 25%." He added that "These results are a testament to the health of our industry and the appeal of our homes." CONSTRUCTION COSTS REMAIN HIGH: Dean Mon, a New Jersey developer and the new chairman of the NAHB, told The New York Times that "Steady job growth, rising wages and low interest rates are fueling demand but builders are still grappling with increasing construction and development costs." PRICE ACTION: Shares of all the major home builders are higher at midday, including Lennar (LEN), KB Home (KBH), Hovnanian (HOV), PulteGroup (PHM), Toll Brothers (TOL), Beazer Homes (BZH) and D.R. Horton (DHI). | ||||
| Over a week ago | ||||
Meeting to be held in… Meeting to be held in Dallas, TX on January 30 hosted by Oppenheimer. | ||||
Community Tour and… Community Tour and Meeting with Management at Company Headquarters to be held in Dallas, TX on January 30 hosted by KeyBanc. | ||||
RBC Capital analyst… RBC Capital analyst Michael Dahl raised his price target on D.R. Horton to $55 after its "strong" Q1 beat and slight guidance raise, saying he expects continued market strength into the spring selling season. The analyst adds that the company's position in entry-level and local scale markets will remain tailwinds and may also push price higher given that "affordable" housing supply remains tight. Dahl still keeps his Underperform rating on the stock however, reflecting the 5% decline in its inventory and slowing backlog growth, which may limit further market outgrowth "until community growth inflects." | ||||
Barclays analyst Matthew… Barclays analyst Matthew Bouley raised his price target for D.R. Horton to $65 from $61 saying the company's Q1 results demonstrated strength from a product positioning standpoint, with "healthy" order growth and "consistent" gross margins. He believes the performance warrants a premium valuation and keeps an Overweight rating on shares of D.R. Horton. | ||||
Notable gainers among… Notable gainers among liquid option names this morning include D R Horton (DHI) $60.37 +1.85, AbbVie (ABBV) $85.47 +1.91, Clorox (CLX) $160.69 +2.44, CME Group (CME) $212.33 +3.16, and Allergan (AGN) $190.44 +2.19. | |