New Home stock: buy or sell?

NWHM stock price: $1.36 17.24% At close on April 6th, 2020

Updated on:
April 6th, 2020

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New Home shares rocketed 17.24% to $1.36 today. On Thursday NWHM plunged a scary -14.66%.

The New Home Company Inc., a homebuilder, focuses on the design, construction, and sale of homes. The company operates in two segments, Homebuilding and Fee Building.

Should I buy New Home stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. That's why is so important to choose your own trading plan that fits your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, New Home stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is New Home stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't find any rating for NWHM stock for the last month.

New Home stock analysis

Daily outlook

New Home ended today at $1.36 and rocketed an extraordinary 17.24%.

New Home shares rocketed 17.24% to $1.36 today. Since price and SMA200d lines crossed down on March/9, NWHM fell $-3.62 per share (-72.69%). Since SMA100d and SMA200d crossed up on January, NWHM price slid a -71.43%. NWHM is soaring again after a 55.65% correction from its last top on March/26 at $2.48.

NWHM stock chart (daily)

Weekly outlook

After sliding a bloodcurdling -97.41% in a week last week, New Home closed this week at $1.36 and skyrocketed a super good 17.24%.

Since price and 40-weeks moving average lines crossed down early March, NWHM fell $-3.62 per share (-72.69%). Trading stocks that are under the 40-weeks (that is, 200-days) moving average mark is not recommended by many experts, as it indicates that the stock has not enough institutional support.

NWHM stock chart (weekly)

New Home stock price history

New Home stock went public on January 31st, 2014 with a price of $11.501. Since then, NWHM stock lost a -88.20%, with a yearly average of -14.70%.

1: Adjusted price after possible price splits or reverse-splits.

New Home stock historical price chart

NWHM stock reached 52-week highs on February at $6.00, and all-time highs 2015-07-13 with a price of 17.97.

New Home stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we have not found any price target for New Home stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

After publishing its last earnings report , New Home . As soon as we get its posted EPS from the earnings report, we will update this report.
NWHM earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.04n/a
2017-Q2-n/a0.07n/a
2017-Q3-n/a0.21n/a
2017-Q42018-02-140.640.651.6%
2018-Q12018-05-03-0.05-0.03n/a
2018-Q22018-08-030.020.01-50.0%
2018-Q32018-10-25n/a0.12n/a
2018-Q42019-02-15n/a0.28n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, New Home annual turnover plummed a terrifying -11.13% to $667.57 million USD from $751.17 marked in 2017. On the other hand, its profit margin (compared to revenues) decreased to -2.13%, that is $-14.22 million.

NWHM annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$83 M-$5.98 M7.2%-
2014$150 M79.81%$4.79 M3.2%-19.96%
2015$430 M187.39%$22 M5.0%353.10%
2016$694 M61.46%$21 M3.0%-3.07%
2017$751 M8.17%$17 M2.3%-18.41%
2018$668 M-11.13%$-14.22 M-2.1%-182.88%

Quarterly financial results

New Home posted $229.67 M in sales for 2018-Q4, a 44.34% up compared to previous quarter. Reported quarter income marked $-16.15 M with a profit margin of -7.03%. Profit margin eased a -8.58% compared to previous quarter when profit margin was 1.55%. When comparing sales to same quarter last year, New Home sales marked a spooky decrease and collapsed a -29.14%. Looking back to recent quarterly results, New Home posted 3 positive quarters in a row.
NWHM quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$125 M-$0.85 M0.7%-
2017-Q2$144 M15.27%$1.52 M1.1%79.67%
2017-Q3$158 M9.59%$4.32 M2.7%184.21%
2017-Q4$324 M105.22%$10.47 M3.2%142.38%
2018-Q1$123 M-61.98%$-0.64 M-0.5%-106.11%
2018-Q2$156 M26.23%$0.12 M0.1%-117.97%
2018-Q3$159 M2.29%$2.46 M1.5%2,038.26%
2018-Q4$230 M44.34%$-16.15 M-7.0%-756.77%

New Home ownership

When you are planning to invest in shares of a company, it's worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For New Home, 24.09% of all outstanding shares are owned by its staff.

In case of New Home stock, 69.26% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for NWHM stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to New Home:

NWHM
Market cap$27.3 M
Total shares20.1 M
Float shares12.1 M
  - Institutional holdings (%)69.3%
  - Insider holdings (%)24.1%
Shares in short selling0.0%

New Home summary

Monday, April 6th, 2020
Open$1.25
Close$1.36
Day range$1.22 - $1.54
Previous close$1.16
Session gain17.24%
Average true range$0.47
50d mov avg$3.95
100d mov avg$4.31
200d mov avg$4.26
Daily patternlb01a
Weekly pattern

New Home performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare New Home performance to :
Stock3m6m12m
NWHMNew Home-70.56%-66.75%-74.86%

New Home competitors

Unfortunately, we could not find any public company that could be defined as New Home competitor. This doesn't mean New Home does not have any competitor in the market, it's just we could not detected it.