NEW YORK (TheStreet) -- Shares of William Lyon Homes (WLH) are up 2.21% to $26.32 after it announced an agreement to acquire the residential home building business of privately held Polygon Northwest Co. for $520 million in cash.
The transaction marks William Lyon's entry into Washington and Oregon, and is expected to close in the third quarter of 2014.
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Separately, TheStreet Ratings team rates WILLIAM LYON HOMES as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WILLIAM LYON HOMES (WLH) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and poor profit margins."