Is Taylor Morrison Home Corp. (THMC) A Smart Long-Term Buy?

Miller Value Partners, an investment management firm, published its “Miller Opportunity Equity” fourth quarter 2021 investor letter – a copy of which can be seen here. A quarterly net decline of 4.29% has been recorded by the fund for the fourth quarter of 2021, compared to the S&P 500 Index’s 28.71% gain for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Miller Opportunity Equity, in its Q4 2021 investor letter, mentioned Taylor Morrison Home Corporation (NYSE: TMHC) and discussed its stance on the firm. Taylor Morrison Home Corporation is a Scottsdale, Arizona-based home building company with a $3.6 billion market capitalization. TMHC delivered a -4.55% return since the beginning of the year, while its 12-month returns are down by -18.28%. The stock closed at $29.46 per share on February 4, 2022.

Here is what Miller Opportunity Equity has to say about Taylor Morrison Home Corporation in its Q4 2021 investor letter:

“Taylor Morrison Home Corp. (TMHC) rose 35.6% during the quarter benefitting from a decline in interest rates early in the quarter which reversed in December. Taylor Morrison reported solid Q3 earnings with orders of 3,372 beating consensus expectations of 3,265 with homebuilding revenue coming in at $1.77B versus $1.73B expected. Gross margins ex-charges came in at 21.2% ahead of consensus of 20.3% leading to Earnings Per Share (EPS) of $1.34 versus $1.20 expected. The company expects gross margins and community count to continue to increase in Fiscal Year 2022 (FY22). Lou Steffens was named as successor to current CFO Dave Cone who is set to retire at the end of calendar 2021. The company renewed its $250M share repurchase program through June 2024.”

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Our calculations show that Taylor Morrison Home Corporation (NYSE: TMHC) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. TMHC was in 23 hedge fund portfolios at the end of the third quarter of 2021, compared to 23 funds in the previous quarter. Taylor Morrison Home Corporation (NYSE: TMHC) delivered a 2.38% return in the past 3 months.

You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.