Taylor Wimpey Share Price Analysis (LON:TW)
Name: Taylor Wimpey (LON:TW)
Description: The current Taylor Wimpey share price is 137.25p (as of 08/12/2023 16:45) which is a change of 0.15 or 0.11% from the last closing price of 137.25 with 11,822,884 shares traded giving LON:TW a market capitalisation of £4,850,166,577. The most recent daily high has been 138.5 and daily low 135.3. The LON:TW share price 52 week high has been 138.5 and the 52 week low 98.16. Based on the most recent LON:TW share price opening of 137.25, the current LON:TW EPS (earnings per share) are 0.16 and the PE (price earnings ratio) is 8.69.
Summary
Taylor Wimpey (LON:TW) is one of the UKs largest house builders, in 2021 it sold just under 14,000 homes. However since then higher interest rates have dented the housing market and limited the number of first time buyers, whilst inflation has pushed up the cost of building materials and labour. In its recent trading update te firm said it was targeting upto 10,500 sales in 2023 looking for operating profits around £470.0 million. 7/12/23
Pros
- Stock price up +18.0% in the last month
- Lower interest rates and cheaper mortgages should boost the business
- Dividend Yield of 7.27%
Cons
- A very cyclical business
- Drivers for the sector are outside of its control.
- UK house prices continue to fall
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Outlook
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Overall
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Taylor Wimpey’s share price is in a poor shape this year because of several reasons: A persistent rise in borrowing cost – eg, mortgage costs rising at an accelerating rate A spike in Inflation – which erodes the purchasing power of buyers Economic uncertainty – arising from the war in Ukraine Surging energy cost –
Is Taylor Wimpey (LON:TW) a good investment in the long term?
Unlike buying a physical property, buying a developer’s shares as an investment depends on more than just property prices. To make money, a buoyant stock market and a competent management are required too. And you will need to know which developer to buy as different firms will have different strategies. Lastly, you are buying a