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SCOTTSDALE, AZ - Taylor Morrison Home Corporation (NYSE:TMHC), a leading national homebuilder and developer with a market capitalization of $5.76 billion, has entered into an accelerated share repurchase agreement (ASR Agreement) with Mizuho (NYSE:MFG) Markets Americas LLC to buy back $50 million of its common stock. This transaction, announced on Thursday, is part of the company’s larger $1 billion share repurchase program. According to InvestingPro data, management has been consistently aggressive with share buybacks, demonstrating strong confidence in the company’s financial position.
The agreement, dated April 30, 2025, will see Taylor Morrison initially receive shares worth 80% of the repurchase price, based on the April 30 closing price. The final number of shares repurchased will depend on the volume-weighted average price of the common stock over the term of the ASR Agreement, with adjustments and a discount applied as per the agreement’s conditions.
The final settlement of the ASR Agreement is expected to be completed by the third quarter of 2025. This strategic move by Taylor Morrison demonstrates the company’s commitment to returning value to its shareholders and confidence in its financial position.
The share repurchase program is a common practice among public companies, allowing them to reinvest in themselves by reducing the number of outstanding shares on the market, which can potentially increase the value of remaining shares.
The information provided in this article is based on Taylor Morrison Home Corporation’s recent SEC filing.
In other recent news, Taylor Morrison Home Corporation reported impressive first-quarter earnings for 2025, with an adjusted earnings per share (EPS) of $2.18, surpassing analyst expectations of $1.89. The company’s revenue reached $1.8 billion, slightly above the anticipated $1.78 billion, marking a 12% year-over-year increase in home closings revenue. Following these strong results, BTIG raised its price target for Taylor Morrison to $79.00, maintaining a Buy rating, while Raymond (NSE:RYMD) James adjusted its target to $65.00, citing broader economic factors. Despite a 9% year-over-year decline in new order volume, Taylor Morrison’s first-quarter performance was bolstered by higher-than-expected volume, pricing, and gross margins, alongside lower sales and administrative expenses.
BTIG analysts highlighted Taylor Morrison’s strategic shift towards higher-margin communities and ongoing debt reduction as positive factors supporting the stock’s valuation. The company is also optimistic about its future, targeting 13,000 to 13,500 home deliveries in 2025, with a gross margin expectation of around 23% for the year. However, Raymond James noted potential challenges from fluctuating mortgage rates and consumer confidence, which could impact pricing through the end of the year. Despite these challenges, Taylor Morrison’s diverse customer base and strategic initiatives are expected to sustain its financial performance. The company plans to continue share repurchases, targeting approximately $350 million for the year, supported by a strong balance sheet and liquidity.
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