Lennar and CalAtlantic to merger in almost $10B deal

Share

Lennar and CalAtlantic to merger in almost $10B deal

CalAtlantic Group (NYSE:CAA) last announced its earnings results on Thursday, July 27th. The companies' statement didn't say what will happen with other CalAtlantic executives. UBS AG began coverage on shares of CalAtlantic Group in a report on Wednesday, October 25th. Zacks Investment Research cut CalAtlantic Group from a hold rating to a sell rating in a research note on Monday, October 31st. They set a market perform rating on the stock. They set an outperform rating and a $44.00 price objective on the stock. The forecast of 4 surveyed investment analysts covering the stock advises investors to Buy stake in the company.

CalAtlantic Group (NYSE CAA) traded up 1.18% during midday trading on Friday, hitting $40.45. Company shares have been seen trading 21.23% off of the 52 week high and 62.98% away from the 52 week low.

In the wider markets, USA stocks are set for a lower open after the highs of Friday. The construction company reported $0.75 earnings per share (EPS) for the quarter, missing the Thomson Reuters' consensus estimate of $0.78 by ($0.03). The companies had $17 billion in revenue over the last 12 months.

This transaction will be subject to approval by CalAtlantic and Lennar shareholders. The firm's revenue was up 4.0% on a year-over-year basis. With an institutional ownership near 0%, it carries an earnings per share ratio of 3.59. 2 analysts recommended Overweight these shares while 1 recommended Underweight, according to FactSet data.

The deal will close in the first quarter of 2018. Shareholders of record on Thursday, December 15th will be issued a $0.04 dividend. The ex-dividend date was Thursday, September 14th. This represents a $0.16 annualized dividend and a yield of 0.50%. CalAtlantic Group's payout ratio is 4.46%. The deal would include $3.6 million of debt assumed and will be comprised of 80 percent stock and 20 percent cash. The shares were sold at an average price of $36.00, for a total transaction of $613,188.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. CalAtlantic stockholders will own approximately 26 percent of the combined company. Inc. purchased a new position in CalAtlantic Group in the second quarter worth $138,000.

Share

Advertisement

© 2015 Leader Call. All Rights reserved.