) mortgage banking wing, Universal American Mortgage Company
(UAMC), recently acquired some of the assets of Pinnacle Mortgage
Group, Inc. (Pinnacle).
Pinnacle is a Colorado -based mortgage company that has license
in seven Western states and has 10 offices in Southern California
and Colorado. Post acquisition, Pinnacle will join UAMC's
retail mortgage operations and will serve new and resale
homebuyers in 26 states.
The acquisition will offers easy access to mortgage finance for
the homebuyers in California and Colorado, which will smoothen
Lennar's operation in the region. The company has been witnessing
solid business in the housing market in the West, which includes
California and Nevada. In fact, the company reported high
double-digit increase in net order units and value in the western
region in fiscal first quarter 2014. Focusing further on this
lucrative region will contribute towards the company's sales in
the upcoming quarters.
Lennar reported first quarter 2014 earnings results on Mar 20,
surpassing the Zacks Consensus Estimate for both earnings and
revenues. The strong results were driven by double-digit growth
in homebuilding revenues and solid margins. Gross margin on home
sales expanded a massive 300 basis points on the back of higher
average selling price, favorable product mix (increased
deliveries from higher margin communities), insurance recovery
and reduced incentives. Management is optimistic and expects a
strong spring selling season for fiscal 2014.
Lennar Corporation carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Some better ranked stocks in the homebuilding sector are
William Lyon Homes
Taylor Morrison Home Corp.
). While William Lyon Homes and Taylor Morrison Home Corp. sport
a Zacks Rank #1 (Strong Buy), NVR carries a Zacks Rank #2 (Buy).
LENNAR CORP -A (LEN): Free Stock Analysis
NVR INC (NVR): Free Stock Analysis Report
TAYLOR MORRISON (TMHC): Free Stock Analysis
WILLIAM LYON HM (WLH): Get Free Report
To read this article on Zacks.com click here.