Homebuilder stocks fall after several downgrades at Barclays

Homebuilder stocks slumped broadly Tuesday, after Barclays downgraded several of them, and reiterated a bearish view on some others, citing concerns that valuations suggest investors may be too optimistic in the face of data pointing to moderating buyer traffic trends. Toll Brothers Inc.'s stock /zigman2/quotes/201912487/composite TOL +1.25% shed 1.6% after analyst Michael Dahl downgraded it to underweight from equal weight, while shares of Lennar Corp. /zigman2/quotes/202536373/composite LEN +0.41% fell 1.5%, PulteGroup Inc. /zigman2/quotes/201694804/composite PHM +1.89% lost 0.6% and TRI Pointe Group Inc. /zigman2/quotes/204302452/composite TPH +0.06% dropped 1.7% after Dahl downgraded them to equal weight from overweight. Shares of KB Home /zigman2/quotes/206220859/composite KBH +0.72% slipped 0.2%, Meritage Homes Corp. /zigman2/quotes/209069331/composite MTH +0.65% gave up 0.8% and Realogy Holdings Corp. /zigman2/quotes/201151464/composite RLGY +1.22% lost 0.3% after Dahl reiterated his underweight ratings. "Our June A.G.E.N.T. Survey indicated moderating buyer traffic trends, warning of risk that near-term catalysts for builders will disappoint relative to rising expectations," Dahl wrote in a note to clients. Separately, CalAtlantic Group Inc.'s stock bucked the sector's trend by rallying 0.8%, after Dahl upgraded it to equal weight from underweight, citing its recent underperformance relative to the group. The iShares U.S. Home Construction ETF /zigman2/quotes/203468436/composite ITB +0.33% , which was down 0.6% in morning trade, has run up 25% year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.0073% has gained 8.4% this year.

/zigman2/quotes/201912487/composite

Add to watchlist TOL

Toll Brothers Inc.

US : U.S.: NYSE

$ 39.73

+0.49 +1.25%

Volume: 2.57M

Dec. 13, 2019 6:30p

P/E Ratio

9.83

Dividend Yield

1.11%

Market Cap

$5.51 billion

Rev. per Employee

$1.50M

/zigman2/quotes/202536373/composite

Add to watchlist LEN

Lennar Corp. Cl A

US : U.S.: NYSE

$ 58.30

+0.24 +0.41%

Volume: 3.06M

Dec. 13, 2019 6:30p

P/E Ratio

9.64

Dividend Yield

0.27%

Market Cap

$18.44 billion

Rev. per Employee

$1.77M

/zigman2/quotes/201694804/composite

Add to watchlist PHM

PulteGroup Inc.

US : U.S.: NYSE

$ 40.38

+0.75 +1.89%

Volume: 2.89M

Dec. 13, 2019 6:30p

P/E Ratio

12.31

Dividend Yield

1.19%

Market Cap

$10.74 billion

Rev. per Employee

$1.98M

/zigman2/quotes/204302452/composite

Add to watchlist TPH

TRI Pointe Group Inc.

US : U.S.: NYSE

$ 15.71

+0.01 +0.06%

Volume: 1.42M

Dec. 13, 2019 6:30p

P/E Ratio

11.85

Dividend Yield

N/A

Market Cap

$2.19 billion

Rev. per Employee

$2.27M

/zigman2/quotes/206220859/composite

Add to watchlist KBH

KB Home

US : U.S.: NYSE

$ 34.95

+0.25 +0.72%

Volume: 752,963

Dec. 13, 2019 6:30p

P/E Ratio

13.88

Dividend Yield

1.03%

Market Cap

$3.07 billion

Rev. per Employee

$2.37M

/zigman2/quotes/209069331/composite

Add to watchlist MTH

Meritage Homes Corp.

US : U.S.: NYSE

$ 64.64

+0.42 +0.65%

Volume: 417,675

Dec. 13, 2019 6:30p

P/E Ratio

11.43

Dividend Yield

N/A

Market Cap

$2.46 billion

Rev. per Employee

$4.61M

/zigman2/quotes/201151464/composite

Add to watchlist RLGY

Realogy Holdings Corp.

US : U.S.: NYSE

$ 10.82

+0.13 +1.22%

Volume: 2.52M

Dec. 13, 2019 6:30p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

$1.22 billion

Rev. per Employee

$533,246

/zigman2/quotes/203468436/composite

Add to watchlist ITB

iShares U.S. Home Construction ETF

US : U.S.: Cboe BZX

$ 45.22

+0.15 +0.33%

Volume: 1.57M

Dec. 13, 2019 4:10p

/zigman2/quotes/210599714/realtime

Add to watchlist SPX

S&P 500 Index

US : S&P US

3,168.80

+0.23 +0.0073%

Volume: 1.96B

Dec. 13, 2019 5:14p