The homebuilding sector has long been out of favor following the housing market crisis of 2008 and 2009. In recent quarters some value investors began to see some attractiveness in the sector once again as signs of life reemerge.
In June U.S. homebuilder sentiment rose to its highest level since September. The National Association of Homebuilders and Wells Fargo Housing Market index rose to 59 from 54 in May. U.S. future home construction permits also rose 11.8% to an eight-year high in May, while housing starts declined after a gain in April.
According to the GuruFocus All-in-One Screener, three homebuilder stocks topped the sector’s representation in gurus’ buying in the first quarter: Beazer Homes USA Inc. (BZH, Financial), Cavco Industries Inc. (CVCO, Financial) and DR Horton Inc. (DHI, Financial).
Five gurus held shares of Beazer Homes USA. Three started new positions in the first quarter: Chuck Royce (Trades, Portfolio), Steven Cohen (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio). Chuck Royce (Trades, Portfolio) started the largest new position, with 698,075 shares, or 2.54% of the shares outstanding.
Beazer Homes USA Inc. is a homebuilder with active operations in 16 states within three geographic regions in the United States: West, East, and Southeast. Beazer Homes USA Inc. has a market cap of $535.250 million; its shares were traded at around $19.50 with and P/S ratio of 0.42.
Seven gurus held Cavco Industries at the end of the first quarter. Four increased their positions: Joel Greenblatt (Trades, Portfolio), Chuck Royce (Trades, Portfolio) and Jim Simons (Trades, Portfolio). Joel Greenblatt (Trades, Portfolio) made the largest increase, boosting his holding to 19.06% to 5,271 shares.
Cavco Industries Inc. was formed on June 30, 2003 as a successor corporation to previous Cavco entities operating since 1965. Cavco Industries Inc. has a market cap of $664.99 million; its shares were traded at around $74.99 with a P/E ratio of 28.32 and P/S ratio of 1.18.
Twelve gurus held DR Horton Inc. shares at the end of the first quarter. Two started new positions: George Soros (Trades, Portfolio) and David Tepper (Trades, Portfolio). Soros started the largest position, buying 2,796,105 shares, or 0.76% of its shares outstanding.
DR Horton Inc. is a Delaware corporation, incorporated in 1991. DR Horton Inc. has a market cap of $10.11 billion; its shares were traded at around $27.58 with a P/E ratio of 17.69 and P/S ratio of 1.09. The dividend yield of DR Horton Inc. stocks is 0.91%.
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