TOL - Green Brick Partners: Overdue For Some Consolidation

2024-05-28 09:25:40 ET

Summary

• Green Brick Partners has performed well in navigating the challenges of the housing sector, including high interest rates and tepid existing home sales.
• The company operates in states experiencing a large amount of intrastate migration and job growth above the national average.
• Despite beating expectations in the first quarter, analysts remain cautious about Green Brick's prospects, and the stock is selling at the high end of its P/BV historical valuation.
• We take a deeper look at Green Brick Partners after the big recent run in equity in the paragraphs below.

I haven't taken a look at housing related concern Green Brick Partners ( GRBK ) since October 2022. At the conclusion of that article , GRBK was recommended for a covered call holding. That trade turned out to be profitable, as the company has done a commendable job navigating through the myriad headwinds facing the housing sector, with average 30-year mortgage rates hovering around seven percent. 2023 saw the lowest levels of existing home sales since 1995, thanks to high interest rates as but one example of those challenges....

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