5 Stocks Insiders are Buying Now

2. Howard Hughes Holdings Inc. (NYSE:HHH)

Insider Purchase Date: November 15

Pershing Square Capital Management, L.P., who is both a director and a 10% owner at Howard Hughes Holdings Inc. (NYSE:HHH), earlier this month bought 201,600 shares of the company at an average price of $74.34 per share. In another insider purchase initiated on November 7, Pershing Square Capital bought 190,248 shares of Howard Hughes Holdings Inc. (NYSE:HHH) at $72.24 per share.

Earlier this month Howard Hughes Holdings Inc. (NYSE:HHH) posted third quarter results. GAAP EPS in the third quarter came in at -$10.97. Revenue fell about 58% year over year to $268.7 million, beating estimates by $37.81 million.

Pershing Square Holdings made the following comment about Howard Hughes Holdings Inc. (NYSE:HHH) in its first half 2023 investor letter:

“Howard Hughes Holdings Inc. (NYSE:HHH)’s high-quality collection of well-located master planned communities (“MPC”) delivered resilient performance in the first half of 2023 led by a strong recovery in the housing market and robust leasing momentum in the company’s income producing operating assets.

Mortgage interest rates have stabilized this year after rapidly rising in 2022. The supply of home resale inventory remains constrained as homeowners are reluctant to sell their existing homes and incur more expensive mortgages. As a result, there has been a resurgence in demand for newly built homes. Amidst that backdrop, the relative affordability of HHH’s MPCs, which are located in low cost-of-living and low-tax states like Texas and Nevada, remains highly appealing to prospective homebuyers. New home sales in HHH’s MPCs increased 11% year-over-year in the first half of 2023, reflecting strong demand for future land sales and causing the company to raise its guidance for full-year 2023 MPC land sale profits by 20%.

In HHH’s income-producing operating assets, net operating income (“NOI”) grew 6% on a same-store basis during the first half of the year driven by improving leasing velocity and strong rental rate growth. The company’s office portfolio is benefiting from a “flight to quality” as companies and their employees are drawn to the desirability of HHH’s walkable and amenity-rich MPCs. Likewise, in the company’s condominium development at Ward Village, Hawaii, HHH continues to experience durable sales momentum with its latest condo tower already 83% pre-sold within nine months of its launch. In the most recent quarter, the company contracted to sell 43 units, representing an impressive 27% of available unit inventory. At its Seaport development in New York City, the company is focused on driving operational improvements at the recently opened Tin Building food hall, which continues to generate operating losses in its first full year of operations.…” (Click here to read the full text)