The Ryland Group Inc
) has finalized the acquisition of the assets of LionsGate Homes
in Dallas, Texas, which was announced in mid-May 2013. Ryland's
acquisition of LionsGate Homes will allow it to gain control over
the Fort Worth market, where LionsGate Homes currently operates
17 active communities. In addition, the acquisition will provide
Ryland with approximately 843 lots and homes for future sales and
146 homes, which have already been sold. Financial terms of the
deal were not disclosed.
This is Ryland's third acquisition in the past 11 months,
after the acquisition of the assets of Timberstone Homes in
Charlotte and Raleigh in Jul 2012 and Trend Homes in Phoenix in
In the recently reported first quarter 2013, Ryland posted
earnings of 43 cents per share compared to the year-ago loss of 7
cents. Ryland's revenues in the quarter surged 73.6% year over
year on the back of increase in homebuilding revenues. The
company's new orders also increased in double-digits.
The favorable situation in the housing market has resulted in
increase in demand for new homes, where inventory levels are
dropping and prices are moving up. Ryland has been constantly
introducing new communities, thus capitalizing on the improving
Ryland holds a Zacks Rank #1 (Strong Buy). Other stocks in the
homebuilding sector that are worth considering include
Meritage Homes Corp
D. R. Horton Inc.
MDC Holdings Inc
). While Meritage and D.R. Horton hold a Zacks Rank #1, MDC
carries a Zacks Rank #2 (Buy).
D R HORTON INC (DHI): Free Stock Analysis
MDC HLDGS (MDC): Free Stock Analysis Report
MERITAGE HOMES (MTH): Free Stock Analysis
RYLAND GRP INC (RYL): Free Stock Analysis
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