1. Green Brick Partners, Inc. (NYSE:GRBK)
Greenlight Capital’s Equity Stake: $599.15 Million
Number of Hedge Fund Holders: 25
Green Brick Partners, Inc. (NYSE:GRBK) is a diversified homebuilding and land development company. It operates in the real estate and construction sector. It is one of David Einhorn’s top stocks to buy as the real estate sector receives a boost from the Federal Reserve cutting interest rates. Einhorn has held Green Brick’s stocks for almost twenty years. He’s been a long-term investor.
Green Brick Partners, Inc. (NYSE:GRBK) is currently producing some of its top-ever returns. Its sales have increased by 70% annually, marking the highest growth among small to medium-sized homebuilders. Its gross margins in the previous year hit over 30%, ranking it among the industry leaders. In the cities where the company concentrates, such as Dallas, Houston, and Atlanta, there’s been a significant increase in population, job opportunities, and earnings, leading to a surge in housing demand.
The company delivered outstanding results for the second quarter of 2024. The firm declared a 20% increase in home closing revenue for the year, hitting $547 million, alongside a remarkable 35.3% growth in net income. This financial achievement was supported by a 38% increase in earnings per share from the previous year’s period.
In its strategic expansion, Green Brick Partners, Inc. (NYSE:GRBK) launched Green Brick Mortgage, a mortgage company wholly owned by the firm. Additionally, the homebuilder broadened its network of active selling communities by 22%, keeping a cancellation rate of 9.2%.
These recent achievements highlight Green Brick’s strong financial position, which is marked by a solid balance sheet, low debt levels, and ample liquidity. The firm’s backlog value increased by 11% year-over-year, showing robust demand. Looking forward, Green Brick Partners, Inc. (NYSE:GRBK) is confident in its ability to sustain a strong inventory, aiming to have around 4,700 finished lots by the end of 2024.
The firm’s 7.44% revenue increase in the past year, along with a significant rise in earnings of 22.87% in the second quarter of 2024, shows growing influence in the market. Additionally, Green Brick Partners has demonstrated a solid profit margin of 18.93%, indicating effective use of its assets.
As per Insider Monkey’s database, 25 hedge fund portfolios held Green Brick Partners, Inc. (NYSE:GRBK) at the end of the second quarter, which was 21 in the previous quarter.
While we believe in GRBK’s potential, we believe that certain AI stocks promise to deliver high returns within a shorter timeframe. If you are looking for an AI stock that is more promising than GRBK but that trades at less than 5 times its earnings check out our report about the cheapest AI stock.
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