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Bill Ackman, whose firm Pershing Square is the largest owner of Howard Hughes, recently discussed his long-term plans to shift the business away from being just a real estate developer. The goal is to use the cash generated from selling land in its master-planned cities to fund other investments, including its new insurance arm, Vantage.
This shift is central to why many people own the stock. If the company can successfully move toward a model where it uses insurance premiums and land profits to buy other businesses, it becomes a more diversified firm that is less dependent on the ups and downs of the housing market. While no new specific deals were named, the focus remains on this structural transformation.
Source: Bloomberg Markets and Finance
Two top executives at Howard Hughes bought shares of the company in late September. Marc Grandisson, who leads the Vantage insurance business, bought about 1.6 million dollars worth of stock, while Chief Operating Officer Andrew Davis made a smaller purchase of roughly 64,000 dollars.
When executives spend their own cash to buy shares on the open market, it is often a signal that those closest to the business believe the current price is too low. These purchases followed public comments from Bill Ackman about the company's future, suggesting the leadership team is aligned with the plan to turn the firm into a broader holding company.
Source: Barrons
Vantage, the insurance business Howard Hughes recently acquired, has hired Yves Charbonneau as its Chief Risk Officer. This role is responsible for managing the potential losses the company takes on when it sells insurance policies. This is a routine hire for a growing financial business, but it matters because the success of the company's new strategy depends on Vantage being run safely. If the insurance arm can avoid large losses, it provides the steady cash Howard Hughes needs to fund its other developments.
Source: PRNewsWire
The company often beats analyst targets by wide margins, but the results are choppy. This suggests a business where large, one-time deals make it difficult for outsiders to predict exact timing.
| Expectation | |
|---|---|
| EPS | $0.89 |
| Revenue | $625M |
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