WCI Communities surges on Lennar deal

As of recent closing trade, the ask price and the bid price remained at 24.77 and 23.70 respectively. Susquehanna is a market maker in the securities of Lennar and WCI. The stock leaped to over a 9-month high.

WCI said that for the last fiscal year ending on June 30, the company completed 1,118 homes with an average price of $444,000, and has a portfolio of 14,200 home sites located in Florida’s top coastal markets. The difference between Actual EPS and Estimated EPS was $0.05/share. The Next Quarter growth is expected to be 18.9%. Firm’s yearly sales growth for the past five year was -0.90%.

That price is based on a 37% premium above where WCI closed on September 21, 2016.

Analysts projected the maximum potential price target of $297 however minimum reachable price target is $210 expected by them, according to WSJ data.

Separately, TheStreet Ratings team rates the stock as a “buy” with a ratings score of B.

WCI Communities, Inc. annual Divided is 0 while it’s Dividend Yield is 0%. Currently, cash and stock components are divided into $11.75 each. The current expectation is that the merger consideration for each WCI share will be $11.75 in cash and a fraction of a share of Lennar Class A common stock with a value of $11.75. As far as the returns are concern, the return on equity was recorded as 7.60% and return on investment was 4.70% while its return on asset stayed at 4.10%.

The stock is now trading at Distance from 20-Day simple moving Average of 28.92% whereas, Distance from 50-Day Simple moving average is 33.12 Percent and Distance from 200-Day Simple Moving Average of 29.29 percent. (YTD performance is the most important factor to consider; if YTD is negative, the stock is declining; if the YTD Performance value is Positive the stock is surging).