Editor’s Note: Related tickers: PulteGroup, Inc. (NYSE:PHM), D.R. Horton, Inc. (NYSE:DHI), NVR, Inc. (NYSE:NVR), Lennar Corporation (NYSE:LEN), Beazer Homes USA, Inc. (NYSE:BZH), Toll Brothers Inc (NYSE:TOL), Hovnanian Enterprises, Inc. (NYSE:HOV), The Ryland Group, Inc. (NYSE:RYL), Meritage Homes Corp (NYSE:MTH)
IS HOUSING IN TROUBLE AGAIN? (InvestorPlace)
The U.S. housing market has been booming in the last year or so. Nationwide, home prices are up about 9% in the past 12 months, homebuilders like PulteGroup, Inc. (NYSE:PHM), Toll Brothers Inc (NYSE:TOL) and D.R. Horton, Inc. (NYSE:DHI) have trounced the market and foreclosure filings in Q1 are the lowest since 2007. But could we be in the middle of another bubble, or destined for a dreaded double-dip in the housing market? Here are some troubling signs to take into account: Still-Weak Economy: This one is obvious: If you don’t have a job or have a job that pays less than you made a few years ago, you’re not in the market to buy real estate. The persistently high unemployment rate and anemic growth means it’s unrealistic to get back to pre-recession levels simply because we aren’t back to a pre-recession labor market. And if you really want to be pessimistic, remember that the current round of government spending cuts — $85 billion worth — has not fully hit home. Unpaid days off for federal workers and shrinking budgets for contract employees are on the way later this year.
PulteGroup’s Buy Rating Reaffirmed at TheStreet (PHM) (MideastTime)
TheStreet reaffirmed their buy rating on shares of PulteGroup, Inc. (NYSE:PHM) in a report issued on Monday, StockRatingsNetwork reports. “PulteGroup (PHM) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company’s strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.”
News Affecting Housing Stocks: PulteGroup (PHM), Hovnanian (HOV), Toll Brothers (TOL), D.R. Horton (DHI), KB Home (KBH) (TheREM)
Housing stocks were extending declines Thursday on concerns over economic recovery after weak jobs report. The number of U.S. citizens applied for jobless benefits claims rose just 4,000 last week to a seasonally adjusted 352,000. The Labor Department also reported that the four-week average, a less volatile measure, advanced just 2,750 to 361,250. …PulteGroup, Inc. (NYSE:PHM)shares settled -1.83% down to $18.26, trading on above average volume on Wednesday. The stock, as of last close, traded 139.32% up from its 52 week low and was -16.89% behind its 52 week high. Its latest closing price was 9.73% above the SMA200 while the distance from SMA 50 and SMA 20 was -7.51% and -7.64% respectively. The stock has a 6-month performance of 16.38%. Hovnanian Enterprises, Inc. (NYSE:HOV) share price, as of the latest close, was -2.16% lower from its previous close. Its latest closing price of $4.98 moved up 227.63% compared with the 52 week low and was -32.97% below the 52 week high.
D.R. Horton Closes on Their First Luxury Model Home at Chiasso in Fiddler’s Creek, Naples Florida (PRWeb)
D.R. Horton, Inc. (NYSE:DHI) has closed on its first newly completed Washington model at Chiasso, a distinctive village of single-family homes within the Fiddler’s Creek luxury, master-planned community. Located in the beautiful Veneta section of Fiddler’s Creek, Chiasso is a sanctuary of peace and the pinnacle of luxury living. Interwined with waterways, each of the 59 single-family homesites provides superb privacy, most featuring stunning lake views. The village features four spacious floorplans, ranging from 2,583 air-conditioned square feet to 3,522 air-conditioned square feet.
Housing Stocks Down On Doubts Over Recovery: PulteGroup, Toll Brothers, D.R. Horton, Lennar, Hovnanian Enterprises, KB Home, Standard Pacific (TheREM)
Housing stocks declined Wednesday on signs the housing recovery is slowing down. Housing pundit Ivy Zelman has provided 4 signs. The number of construction permits has moved down since January. And though housing starts emerged higher, up 7% last month, this was led by a 31% growth in multifamily starts. Single family starts declined 4.8%. …D.R. Horton, Inc. (NYSE:DHI) declined 2.2% after ranging in price from $21.71 to $22.56 in the last session and closed 2.51% higher to $22.45. Its shares gained 13.50% so far in 2013. The price range in that 1-year period had a best hit of $25.56 on Mar 20, 2013 while lowest level in the same period was $14.37 on Jun 5, 2012.
Housing Juggernaut Seen Spurring 500,000 New U.S. Workers (Bloomberg)
Paul Laney landed a job two months ago as a home inspector in Woodstock, Georgia, as the city added staff to oversee a growing residential construction industry. “I am really ecstatic about it,” said Laney, 52, who closed his own contracting business in 2007. …Price gains on existing homes in markets led by Atlanta, Las Vegas, San Francisco, Phoenix, and Fort Myers, Florida, will benefit homebuilders, said brokerage firm Sterne Agee & Leach Inc. analyst Jay McCanless in Nashville, Tennessee. That will allow homebuilders to raise prices, and prompt some shoppers to look more closely at new rather than existing homes, McCanless said. He has a “buy” rating on builders D.R Horton Inc., The Ryland Group, Inc. (NYSE:RYL) and Meritage Homes Corp (NYSE:MTH).
NVR Unveils New Homes in New Jersey (Nasdaq)
One of the leading home building and mortgage banking companies in the United States, NVR, Inc. (NYSE:NVR) unveiled a new single family model home called Strauss townhome model at Rose Glen in Tinton Falls, NJ under its Ryan Homes division. The Strauss model home accommodates up to 2 bedrooms, a study room, two baths, spacious living areas, an extensive kitchen and attached garages. The owner’s suite offers optional tray ceiling, a large bath with a separate shower, a soaking tub and a walk-in closet.
NVR Announces the First-Ever Virginia Manor Family Festival in Eastern Loudoun County, Virginia (HeraldOnline)
NVR, Inc. (NYSE:NVR), one of the nation’s largest homebuilding and mortgage banking companies, is thrilled to announce the first-ever Virginia Manor Family Festival, taking place on Saturday, April 20 from 12-4pm. With homes built by NVHomes and Ryan Homes, Virginia Manor offers a new view on great living with stunning townhomes priced from the mid $300’s, single-family homes priced from the upper $400’s and estate-style single-family homes priced from the upper $500’s. Gather up the kids, pack up the car and head to Virginia Manor. There will be plenty of fun for all ages, great food and exciting prizes handed out during an exclusive giveaway. Enjoy delicious Barbeque from Red, Hot & Blue while taking in the spectacular mountain views and the over 1 million square feet of tree conservation space. Kids will love the moon bounce, the climb & slide and getting their faces painted.
Lennar Corp. (LEN) Goes Ex-Dividend Soon (Forbes)
Looking at the universe of stocks we cover at Dividend Channel, on 4/22/13, Lennar Corp. (NYSE: LEN) will trade ex-dividend, for its quarterly dividend of $0.04, payable on 5/8/13. As a percentage of LEN’s recent stock price of $37.93, this dividend works out to approximately 0.11%. …In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from LEN is likely to continue, and whether the current estimated yield of 0.42% on annualized basis is a reasonable expectation of annual yield going forward.
Toll Brothers Inc (TOL), Lennar Corporation (LEN), PulteGroup, Inc. (PHM) : No Competition And Huge Growth? Sign Me Up! (InsiderMonkey)
I’ve been pounding the table to buy Toll Brothers Inc (NYSE:TOL) for a while now. …By this measure, Toll Brothers Inc (NYSE:TOL) leads its peers by a comfortable margin. In the current quarter, Toll’s debt-to-equity ratio is 0.64. By comparison, Lennar Corporation (NYSE:LEN) and PulteGroup, Inc. (NYSE:PHM) reported debt-to-equity ratio of 1.29 and 1.21. Of Toll’s competition, KB Home (NYSE:KBH)appears to be in the weakest position with a debt-to-equity ratio of 4.15. Of course a big difference between Toll and their competition is, Toll doesn’t have a financing division whereas the other builders do.
Deutsche Bank Raises PT on Lennar Corporation on In-Line Results (Benzinga)
In a report published Monday, Deutsche Bank analyst Nishu Sood reiterated a Hold rating on Lennar Corporation (NYSE:LEN), and slightly raised the price target from $37.00 to $38.00. In the report, Sood noted, “Lennar’s results were largely in line with forecasts; however, gross margins were lower than expected. While gross margins at 22.1% were below DB and the Street at 23%, the firm reaffirmed its 23-24% margin guidance for the year. The reaffirmed margin guidance provides some reassurance to investors; however, reduced momentum in margins is significant in that margins have been the highlight of the Lennar story over the past 15-18 months.
Lennar Sells Senior Notes (Nasdaq)
Lennar Corporation (NYSE:LEN) recently sold senior notes worth $50 million due on Nov 15, 2022 to initial purchasers, who in turn will resell the senior notes to qualified institutional buyers. The senior notes, which carry an interest rate of 4.75%, were sold at a price of 98.25% and generated total outstanding principal amount of $575 million. The principal amount is expected to be delivered and paid for on Apr 17, 2013. Prior to this, Lennar had sold its senior notes due 2022 worth $175 million on Feb 4, 2013 and $350 million worth of notes on Oct 23, 2012.
Beazer Homes USA, Inc. to Webcast Its Second Quarter Fiscal 2013 Financial Results Conference Call on May 2, 2013 (FortMillTimes)
Beazer Homes USA, Inc. (NYSE:BZH) (www.beazer.com) has scheduled the release of its financial results for the quarter ended March 31, 2013 on Thursday, May 2, 2013 before the open of the market. The Company will hold a conference call on the same day at 10:00 AM ET to discuss the results. The public may listen to the conference call and view the Company’s slide presentation over the internet on the “Investor Relations” page of the Company’s website, www.beazer.com.
Beazer Homes Introduces New Townhomes At Colonial Forge In Stafford (WSJ)
After successfully selling single family homes in Colonial Forge, Beazer Homes USA, Inc. (NYSE:BZH), one of the country’s top 10 homebuilders, is pleased to introduce its new townhome offerings in the community. This new section will offer two different townhome designs, ranging from 1,514 to over 2,500 square feet. The homes are well priced, in the $200s, and the first homes are expected to be completed in early summer. “We’re excited to be offering these affordable townhomes at such a great community,” said John Reeves, Division President at Beazer Homes USA, Inc. (NYSE:BZH). “The exteriors will be the same ‘craftsman style’ as the single family homes and interiors will have the same quality construction we strive to provide in all of our homes.”
