wnol.info June 19 2018

Lennar to buy CalAtlantic for $5.7B with housing sales red hot

June 19 2018, 02:36 | Alonzo Simpson

The deal which was announced jointly by the companies on Monday will see the combined entity holding 240,000 building plots across 21 states

Homes under construction

Wells Fargo & Co. initiated coverage on CalAtlantic Group in a research note on Wednesday, September 28th.

Several ratings firms have issued ratings on the company of late. Mizuho added CAA to its research portfolio with an initial rating of "Buy".

"The combined company will have a strong balance sheet and generate significant cash flow available to pay down debt and repurchase shares", Lennar CEO Stuart Miller said in a statement.

On October 31 the stock rating was downgraded from "Buy" to " by analysts at Evercore ISI Group. The stock now has Weekly Volatility of 1.88% and Monthly Volatility of 1.48%.

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Shares of CalAtlantic Group (NYSE:CAA) opened at 40.45 on Thursday. CalAtlantic Group, Inc. The stock has a 50-day moving average of $37.50 and a 200 day moving average of $36.31. Wedbush reissued an "ourperform" rating and set a $41.00 target price on shares of CalAtlantic Group in a report on Monday, July 31st.

The company now has an insider ownership of 1.4 Percent and Institutional ownership of 0 Percent. The company earned $1.67 billion during the quarter, compared to the consensus estimate of $1.68 billion. CalAtlantic Group had a net margin of 7.26% and a return on equity of 11.40%. The firm's revenue was up 166.0% on a year-over-year basis.

For the current quarter, 14 analysts are projecting a mean EPS of $0.81/share. The analysts estimated EPS for the higher end at 1.49 and lower end at 1.08 while the year ago reported earnings per share was 1.38. The ex-dividend date of this dividend is Tuesday, December 13th. CalAtlantic Group's dividend payout ratio (DPR) is 5.56%.

Shareholders at CalAtlantic will receive Lennar stock unless they exercise an option to receive cash amounting to $48.26 per share, subject to a maximum amount of approximately $1.2 billion. By watching how many shares are trading hands and looking for any changes in that activity, trading opportunities can be spotted along with a deeper understanding of the reliability of other indicators on the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. CalAtlantic Group, Inc. (NYSE:CAA) has a 20-Day average volume of 1.67 Million. Parametric Portfolio Associates LLC grew its position in CalAtlantic Group by 50.3% in the first quarter. Finally, Sciencast Management LP acquired a new stake in shares of CalAtlantic Group during the second quarter valued at $222,000. Riverhead Capital Management LLC now owns 4,387 shares of the construction company's stock worth $155,000 after acquiring an additional 1,827 shares in the last quarter.

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