The Ryland Group Inc
) recently announced its decision to acquire the assets of
LionsGate Homes in Dallas, Texas. The acquisition news drove the
shares of Ryland, which hit a new 52-week high of $49.25 on May
Shares of this Zacks Rank #1 (Strong Buy) stock have been
gaining momentum following the announcement of solid first
quarter 2013 results on Apr 24. In fact, the stock attained new
52-week highs of $45.50 on Apr 25 and $47.37 on May 3.
Ryland's share prices closed at $48.99 on May 10, recording a
healthy return of 30.6%, year-to-date. The company's long-term
estimated EPS growth rate is 10%. Average volume of shares traded
over the last three months came in at approximately 1,472K.
Ryland's acquisition of LionsGate Homes will allow it to gain
control over the Fort Worth market, where LionsGate Homes
currently operates 15 active communities. In addition, the
acquisition will provide Ryland with approximately 885 lots and
homes for future sales. Financial terms of the deal were not
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
Solid First Quarter Performance
Ryland posted strong first quarter 2013 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 an 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
Other Stocks to Consider
Other stocks in the homebuilding sector that are worth
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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