Time To Be Bullish Or Bearish On Taylor Morrison Home Corporation (TMHC)?

Analysts at Deutsche Bank cut their rating on shares of Taylor Morrison Home Corporation (NYSE:TMHC) from Buy to Hold in their opinion released on October 22. JMP Securities analysts have downgraded their rating of TMHC stock from Mkt Outperform to Mkt Perform in a separate flash note to investors on October 08. Analysts at JMP Securities issued an upgrade from Mkt Perform to Mkt Outperform for the stock, in a research note that dated back to February 08.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Taylor Morrison Home Corporation (NYSE:TMHC)’s prospects. The earliest insider trade took place on 02/20/2018. Terracciano Joseph parted with a total of 5.79 thousand shares of company at average share price of $23.97. The total for the sales was set at $138.74 thousand. After this transaction, the Chief Accounting Officer account balance stood at 0.05 thousand shares. The stock lost -23.99 percent since that insider sale. On 01/17/2018, Tpg Group Holdings (Sbs) Advis, , sold 1.5 million shares at a price per share of $27.14. This removed 40.7 million shares from the insider’s fortune and the stock saw a -32.87 percent retreat in value since the news became public. This transaction left 0 thousand shares in the account. On 11/01/2017, Executive Vice President & CFO Cone C. David performed a sale transaction worth $832.65 thousand. This sale at $23.79 each has eliminated 35 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -23.41 percent decrease since the transaction was reported. The insider now is left with 9.71 thousand shares remaining in the account. Cone C. David, who performs the Executive Vice President & CFO job, sold 20 thousand shares for $456.6 thousand. The disposal occurred on 10/05/2017 was priced at $22.83 per share. The share price plunged -20.19 percent since the reporting date. Cone C. David now left with a stake of 9.71 thousand TMHC stock worth $176.93 thousand after the insider selling.

Taylor Morrison Home Corporation (TMHC) is expected to jump by 7.74 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $25-month high price target. This represents a whopping 37.21 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $19, which represents a return potential of 4.28 percent when compared to the closing price of the stock of $18.22 on Friday, January 11. The lowest price target for the stock is $16 — slightly more than -12.18 percent from TMHC’s current share price.

The shares are currently floating around the first support level of $17.92. Below this, the next support is placed in the zone of $17.63. Till the time, the TMHC stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 65.81 on daily chart, which may remain a cause for concern. If the price breaks below $17.63 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $18.64 mark may result into a pull-back move towards $19.07 level.

TMHC shares dropped -0.26 points or -1.41 percent on Friday to $18.22 with a heavy trade volume of 4.789 million shares. After opening the session at $18.28, the shares went as high as $18.7675 and as low as $18.05, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.21 billion and now has 121.25 million shares outstanding. Taylor Morrison Home Corporation (TMHC) stock has gained 11.85 percent of market value in 21 trading days.

TMHC stock has a trailing 3-year beta of 1.23, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.58 a share in the trailing twelve months. The stock’s value has surged 14.59 percent year to date (YTD) against a decline of -33.65 percent in 12 month’s time. The company’s shares still trade -35.89 percent away from its 1-year high of $28.42 and 23.69 percent up from 52-week low of $14.73. The average consensus rating on the company is 2.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Taylor Morrison Home Corporation (TMHC) are trading at a P/E ratio of 27.15 times earnings reported for the past 12 months. The industry TMHC operates in has an average P/E of 12.35. Its P/E ratio went as low as 10.34X and as high as 44.23 over the 5-year span. Further, it is sporting a 0.54 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.77. 19.1 percent is the gross profit margin for Taylor Morrison Home Corporation and operating margin sits at 7.3 percent. Along with this, the net profit margin is 5.9 percent.

TMHC will be showing off its Q4 earnings on February 06. Analysts are forecasting revenue to climb 12 percent to $1.46B in the next fiscal quarter, while earnings are seen soaring by nearly -46.75 percent to $0.41 per share. History has shown that shares in Taylor Morrison Home Corporation have gone up on 12 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.83 per share, better than the $0.64, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.01B, worse than the $1.03B analysts expected. Earnings are estimated to increase by -37.5 percent this year, 18.46 percent next year and continue to increase by 8.3 percent annually for the next 5 years.