TMHC
Taylor Morrison Home (NYSE: TMHC) surged 22% intraday after Berkshire Hathaway (BRK.
Article Summary
HOLD- Taylor Morrison Home (NYSE: TMHC) surged 22% intraday after Berkshire Hathaway (BRK.B) agreed to buy the homebuilder for $8.5 billion, paying $72.50 per share, a 24% premium to Friday's close, with the equity piece valued at $6.8 billion and the rest covered by debt.
- The deal is Greg Abel's first significant deal since taking over from Warren Buffett at the start of the year, with Berkshire carrying nearly $400 billion in cash and short-term Treasuries heading into the transaction.
- Abel's plan is to fold TMHC into Clayton Homes, Berkshire's existing homebuilding arm, and the NAHB projects single-family construction rising 1% to 940,000 units this year with a steeper 5% jump to 984,000 next year.
- CEO Sheryl Palmer will remain in her role once the deal closes, expected in the second half of 2026.
- Berkshire already holds public equity stakes in DR Horton, Lennar, and NVR.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | -9.0% | 25% | 0.0 ptsDeclining (-9.0%) - NOT a growth stock |
| EPS Growth Next 5Y ? | 0.0% | 25% | 10.0 ptsVery Weak (0.0%) - Minimal expectations |
| Target Price Upside ? | 2.2% | 20% | 10.0 ptsNear/At Target (2.2%) - Target: $70.00 vs Current: $71.55 |
| Gross Margin % ? | 22.3% | 15% | 40.0 ptsModerate (22.3%) - Adequate margins |
| Drawdown from 52-Wk High ? | -1.3% | 15% | 20.0 ptsBarely a Dip (-1.3%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About TMHC
- Taylor Morrison Home Corporation, together with its subsidiaries, operates as a homebuilder and land developer in the United States.
- It designs, builds, and sells single, and multifamily detached and attached homes in markets for entry-level, move-up, and resort lifestyle buyers under the Taylor Morrison and Esplanade brand names; and develops lifestyle and master-planned communities with single, and multi-family detached and attached homes.
- The company is also involved in the Build-to-Rent homebuilding business under the Yardly brand name; and provision of financial services, title insurance, and closing settlement services.
- Taylor Morrison Home Corporation was founded in 1936 and is headquartered in Scottsdale, Arizona.