The Ryland Group Inc
has finalized the acquisition of the assets of Philadelphia-based
homebuilder, Cornell Homes.
The acquisition will allow Ryland to gain control over 12
active communities in addition to an ongoing project in the
Tri-state area. The project includes 97 homes ready for delivery,
eight decorated models and 1,716 additional lots for future
Ryland will retain all of Cornell's employees and Cornell's
President, Greg Lingo, will join the company as its Philadelphia
This is Ryland's fourth acquisition in the past 11 months,
after the acquisition of Timberstone Homes' Charlotte and Raleigh
divisions in Jul 2012, Trend Homes, Phoenix in Dec 2012, and
LionsGate Homes, Dallas in June this year.
In its first-quarter 2013 results, the Zacks Rank #1(Strong
Buy) company reported on Apr 24, 2013, Ryland posted earnings of
43 cents per share, much better than the year-ago loss of 7
cents. The Zacks Consensus Estimate for the second quarter is
currently pegged at 64 cents per share. Ryland has beaten the
Zacks Consensus Estimate in all the past four quarters with an
impressive average earnings surprise of 26.29%.
The rising demand for new homes has led to a favorable
situation in the housing market, where inventory levels are
dropping and prices are moving up. Ryland, like other
homebuilders such as
Lennar Corporation (
), PulteGroup Inc. (
D.R. Horton, Inc. (
has been gaining momentum from the strong recovery of the U.S.
housing market. Recent comments by Federal Reserve Chairman Ben
Bernanke to keep interest rates low for some time provided
further momentum to the stock and the housing industry, in
general. Moreover, its geographic diversity, strong cash position
and focus on less price sensitive move-up buyers provide the
company an edge over its competitors.
D R HORTON INC (DHI): Free Stock Analysis
LENNAR CORP -A (LEN): Free Stock Analysis
PULTE GROUP ONC (PHM): Free Stock Analysis
RYLAND GRP INC (RYL): Free Stock Analysis
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