David Einhorn, a prominent investor and director at Green Brick Partners Inc. (NASDAQ:NYSE:GRBK), has recently sold a significant portion of the company's stock. According to a recent SEC filing, Einhorn sold a total of 1,017,163 shares of Green Brick Partners at a price of $69.16 per share, amounting to approximately $70.3 million.
The transactions were executed on November 13, 2024. Following these sales, Einhorn and his affiliated entities maintain ownership of 8,642,507 shares, reflecting their continued substantial stake in the company. Einhorn's actions are closely watched by investors due to his influential role and insights into the company.
In other recent news, Green Brick Partners reported a successful Q3 with record earnings and revenues. The company announced a net income of $89 million, a 23.5% increase year-over-year, and earnings per share of $1.98, marking the highest for any third quarter in its history. Green Brick Partners is on track to surpass $2 billion in revenues for fiscal 2024, doubling its revenue since 2021.
In addition to these financial achievements, Green Brick Partners reported home closings grew to 956 homes in Q3, with revenue up 26% to $523 million. The company's homebuilding gross margin reached 32.7%, leading among peers, and net new home orders rose 11.3% year-over-year to 877.
In terms of future plans, Green Brick Partners intends to launch Green Brick Mortgage in Q1 2025 and aims to spend $700 million on land acquisition and development in 2024. The company also plans to expand into northern Austin, Texas, aligning with its infill strategy. These are recent developments that indicate the company's strategic growth plans.
InvestingPro Insights
While David Einhorn's recent sale of Green Brick Partners Inc. (NASDAQ:GRBK) shares has caught investors' attention, it's crucial to consider the company's current financial position and market performance for a comprehensive view.
According to InvestingPro data, Green Brick Partners boasts a market capitalization of $3.09 billion, with a price-to-earnings (P/E) ratio of 8.96. This relatively low P/E ratio suggests the stock may be undervalued compared to its earnings potential, which aligns with one of the InvestingPro Tips indicating that the company is "trading at a low P/E ratio relative to near-term earnings growth."
The company's revenue growth is noteworthy, with a 24.99% increase in quarterly revenue as of Q3 2024. This robust growth is complemented by a strong EBITDA growth of 30.89% over the last twelve months, demonstrating the company's ability to expand its operations and improve profitability.
An InvestingPro Tip highlights that Green Brick Partners "operates with a moderate level of debt," which could be seen as a positive factor for long-term stability, especially in the cyclical real estate development industry.
Despite Einhorn's recent stock sale, it's worth noting that Green Brick Partners has shown impressive price performance, with a 47.95% total return over the past year. However, another InvestingPro Tip cautions that the "stock price movements are quite volatile," which investors should keep in mind when considering their positions.
For those interested in a deeper analysis, InvestingPro offers additional tips and insights. Currently, there are 10 more InvestingPro Tips available for Green Brick Partners, providing a more comprehensive view of the company's financial health and market position.
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