INCLINE VILLAGE, Nev. - Tri Pointe Homes , Inc. (NYSE:TPH), a major U.S. homebuilder with a market capitalization of $3.46 billion, has announced the launch of a new stock repurchase program. Today, the company's Board of Directors approved the buyback of up to $250 million of its common stock through December 31, 2025. This new Repurchase Program succeeds the 2024 Repurchase Program authorized in December of last year. According to InvestingPro analysis, TPH currently appears undervalued, with strong financial health metrics supporting its aggressive capital return strategy.
Under the 2024 Repurchase Program, as of Monday, the company repurchased approximately 1.2 million shares at a weighted average price of $41.57 per share, amounting to $50 million for the fourth quarter. For the entire year, Tri Pointe Homes repurchased nearly 4 million shares, with a weighted average price of $36.97 per share, totaling about $146.6 million. InvestingPro data shows the company maintains exceptional liquidity with a current ratio of 11.58, while trading at an attractive P/E ratio of 7.65.
The company may execute the stock repurchase through open market transactions, block trades, or other means as per federal securities laws. This includes potential trading plans in line with Rule 10b5-1 of the Securities Exchange Act of 1934. However, there is no obligation for Tri Pointe Homes to repurchase any specific number or dollar amount of shares, and the program may be modified, suspended, or discontinued at any time.
The timing and volume of repurchases will be determined by company management based on various factors, including stock market price, corporate needs, market conditions, legal requirements, and tax considerations.
Tri Pointe Homes operates in 12 states plus the District of Columbia and is recognized for its customer service, innovative design, and environmentally responsible business practices. The company has received numerous accolades, including multiple Builder of the Year awards, and has been named to several prestigious lists, such as the Fortune World's Most Admired Companies and the Fortune 100 Best Companies to Work For. The company's strong operational performance is reflected in its 13% revenue growth and robust financial metrics. For deeper insights into TPH's valuation and growth prospects, including 10+ additional ProTips and comprehensive analysis, visit InvestingPro.
This announcement is based on a press release statement and contains forward-looking statements regarding the company's strategy and future operational and financial results. These are subject to a range of business and economic risks and uncertainties.
In other recent news, Tri Pointe Homes announced impressive financial results for the third quarter of 2024. The company saw a 32% increase in home deliveries, reaching 1,619 homes, and a 35% rise in home sales revenue, totaling $1.1 billion. Additionally, the average sales price of homes increased by 2% to $688,000, and gross margins improved to 23.3%. The company also generated $168 million in operating cash flow and reported a backlog of about 2,300 homes valued at $1.7 billion.
Looking ahead, Tri Pointe Homes forecasts a delivery of 1,600-1,800 homes in Q4 2024, with an average sales price between $700,000 and $710,000. The company also outlined expansion plans in Utah, Orlando, and Coastal Carolinas and set a $50 million stock repurchase target for Q4. However, it is worth noting that the company anticipates a decrease in backlog by around 20% entering 2025 due to buyer hesitation influenced by macroeconomic factors.
Despite challenges in the Colorado market and increased sales incentives impacting gross margins, Tri Pointe Homes remains optimistic. The company is strategically positioning itself for growth, with 1,300 homes under construction and unsold, and strong demand in markets like Orange County and Houston. These are the recent developments for Tri Pointe Homes.
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