Is It Worthwhile For Investors To Follow These Insider Trades On Taylor Morrison Home Corporation (TMHC)?

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Taylor Morrison Home Corporation (NYSE:TMHC) finished Friday with a subtraction of -$0.27 to close at $30.35, a downside of -0.88 percent. An average of 465,200 shares of common stock have been traded in the last five days. There was a fall of -$0.58 in the past week, and it reached a new high 2 times over the past 12 months. The last 20 days have seen an average of 823,720 shares traded, while the 50-day average volume stands at 987,678.

TMHC stock has decreased by -0.13% in the last month. The company shares reached their 1-month lowest point of $28.78 on 12/06/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $20.05 and a high of $35.17 in 52 weeks. It has reached a new high 1 time so far this year and lost -13.19% or -$4.61 in price. In spite of this, the price is down -13.70% from the 52-week high.

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Insider Transactions

TMHC stock investors should be aware that Taylor Morrison Home Corporation (TMHC) stock had its last reported insider trading activity 16 days ago on Dec 15. In this transaction, the insider spent $194,153. EVP, CLO & Secretary, Sherman Darrell, disposed of 8,782 shares at a price of $32.31 on Dec 13. The insider now owns more than $283,746 worth of shares. Prior to that, Chief Accounting Officer Terracciano Joseph went on to Sale 794 shares at $31.10 each on Mar 09. An amount of $24,693 was transacted.

Valuation Metrics

Taylor Morrison Home Corporation (TMHC) has a trailing price-to-earnings (P/E) ratio of 3.45. The stock’s beta is 1.67. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.40, the price-to-book (PB) ratio at 0.78, and the price-to-cash flow ratio at 3.63.

Financial Health

Further, the company has a long term debt to equity ratio of 0.62 and a total debt to equity ratio of 0.62 for the quarter ending September 29. Its gross profit as reported stood at $1.55 billion compared to revenue of $7.5 billion.

Earnings Surprise

For the three-month period that ended September 29, Taylor Morrison Home Corporation had $290.34 million in cash and short-term investments compared to $409.79 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $309.78 million in the quarter, while revenues were grew 45.73%. The analyst consensus anticipated Taylor Morrison Home Corporation’s latest quarter earnings to come in at $2.52 per share, but it turned out to be $2.75, a 9.10% surprise. For the quarter, EBITDA amounted to $419.61 million. Shareholders own equity worth $108.35 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Taylor Morrison Home Corporation (TMHC) price momentum. RSI 9-day as of the close on 30 December was 50.23%, suggesting the stock is Neutral, with historical volatility in this time frame at 30.32%.

As of today, TMHC’s price is $30.45 -1.88% or -$0.58 from its 5-day moving average. TMHC is currently trading -1.33% lower than its 20-day SMA and +11.58% higher than its 100-day SMA. However, the stock’s current price level is +26.20% above the SMA50 and -3.22% below the SMA200.

The stochastic %K and %D were 20.68% and 27.55%, respectively, and the average true range (ATR) was 0.92. With the 14-day stochastic at 24.14% and the average true range at 0.97, the RSI (14) stands at 53.53%. The stock has reached -0.34 on the 9-day MACD Oscillator while the 14-day reading was at -0.43.

Analyst Ratings

BTIG Research downgraded Taylor Morrison Home Corporation (NYSE: TMHC) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy.


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