Luckie8/iStock via Getty Images Berkshire Hathaway's ( BRK.A ) ( BRK.B ) agreement to acquire Taylor Morrison Home ( TMHC ) in an $8.5B all-cash deal has renewed investor focus on the U.S. homebuilding sector, even as elevated mortgage rates and affordability concerns continue to weigh on housing demand. Under the agreement announced Sunday, Berkshire will pay $72.50 per share in cash for Taylor M...
Luckie8/iStock via Getty Images Berkshire Hathaway's ( BRK.A ) ( BRK.B ) agreement to acquire Taylor Morrison Home ( TMHC ) in an $8.5B all-cash deal has renewed investor focus on the U.S. homebuilding sector, even as elevated mortgage rates and affordability concerns continue to weigh on housing demand. Under the agreement announced Sunday, Berkshire will pay $72.50 per share in cash for Taylor Morrison, representing a 24% premium to the stock's May 29 closing price. The transaction values the company's equity at approximately $6.8 billion and its enterprise value at roughly $8.5 billion. Despite Berkshire's vote of confidence in the industry, Seeking Alpha Quant Ratings suggest a mixed outlook across publicly traded homebuilders. Hold Rated D.R. Horton ( DHI ) — Quant Rating: Hold (3.13) | YTD: +2.12% Taylor Morrison ( TMHC ) — Quant Rating: Hold (2.93) | YTD: -0.63% Legacy Housing ( LEGH ) — Quant Rating: Hold (2.88) | YTD: +23.00% Toll Brothers ( TOL ) — Quant Rating: Hold (2.86) | YTD: +2.46% LGI Homes ( LGIH ) — Quant Rating: Hold (2.85) | YTD: +11.29% Hovnanian ( HOV ) — Quant Rating: Hold (2.76) | YTD: +13.14% Beazer Homes ( BZH ) — Quant Rating: Hold (2.74) | YTD: +25.26% Green Brick Partners ( GRBK ) — Quant Rating: Hold (2.67) | YTD: +7.34% M/I Homes ( MHO ) — Quant Rating: Hold (2.62) | YTD: +2.87% PulteGroup ( PHM ) — Quant Rating: Hold (2.61) | YTD: +0.78% Lennar ( LEN ) — Quant Rating: Hold (2.61) | YTD: -12.67% Cavco Industries ( CVCO ) — Quant Rating: Hold (2.60) | YTD: -9.18% Champion Homes ( SKY ) — Quant Rating: Hold (2.56) | YTD: -12.86% Sell Rated Meritage Homes ( MTH ) — Quant Rating: Sell (1.98) | YTD: -0.85% TopBuild ( BLD ) — Quant Rating: Sell (1.84) | YTD: +0.07% Persimmon ( PSMMY ) — Quant Rating: Sell (1.67) | YTD: -17.80% KB Home ( KBH ) — Quant Rating: Sell (1.65) | YTD: -13.38% NVR ( NVR ) — Quant Rating: Sell (1.65) | YTD: -16.29% Century Communities ( CCS ) — Quant Rating: Sell (1.58) | YTD: -11.00% Strong Sell Rated Dream Finders ...
Chinese banks turned net borrowers of short-term funds for the first time in seven months, increasing issuance of negotiable certificates of deposit in a sign that the liquidity glut in the financial system may be starting to normalize. Onshore lenders raised a net 186.2 billion yuan ($27.5 billion) via NCDs in May, according to data compiled by Bloomberg. That marked the first month of positive n...
Chinese banks turned net borrowers of short-term funds for the first time in seven months, increasing issuance of negotiable certificates of deposit in a sign that the liquidity glut in the financial system may be starting to normalize. Onshore lenders raised a net 186.2 billion yuan ($27.5 billion) via NCDs in May, according to data compiled by Bloomberg. That marked the first month of positive net issuance since October, meaning sales of the short-term debt instruments exceeded maturities. The shift in the NCD market comes as the People’s Bank of China has sought to drain some of the excess cash that accumulated amid a sharp contraction in loan growth . Further, demand for liquidity typically rises ahead of half-year-end regulatory checks and reporting requirements. Analysts, including Tan Yiming of Tianfeng Securities Co., expect banks to rely more on market-based funding in June. As that happens, the cost of one-year NCDs may move in a range of 1.45%-1.50% this month, he wrote in a note Monday. That’s versus 1.435% on Friday, the lowest on record in data going back to 2015. The PBOC has withdrawn a total of 1.75 trillion yuan of medium- to long-term liquidity over the past three months through instruments with maturities ranging from three months to one year, according to Bloomberg calculations. In its latest quarterly report released mid-May, the PBOC reiterated a pledge to adopt “moderately loose” monetary policy and keep liquidity ample, while warning on the risks of imported inflation from higher oil prices stemming from the war in Iran. The message highlighted the delicate balance policymakers are seeking to strike between supporting economic activity and preventing liquidity conditions from becoming overly loose. The period of easiest liquidity conditions may have passed, and the central bank’s open market operations will have a greater impact on the money-market rates going forward as June tends to see seasonal tightness, Li Qinghe , analyst at Founder Se...