NEW YORK (TheStreet) -- Tri Pointe Homes (TPH) was gaining 2.3% to $15.81 Thursday after Weyerhaeuser (WY) announced the preliminary results of its exchange offer related to the split-off of its homebuilding business Weyerhaeuser Real Estate.
As part the "Reverse Morris Trust" transaction connected to the exchange offer, Weyerhaeuser Real Estate will merge with a subsidiary of Tri Pointe. The split-off company will then become a wholly-owned subsidiary of Tri Pointe. The merger is expected to close on July 7.
More than 4.3 million shares of Tri Pointe were traded by 11:20 a.m. in anticipation of the merger, more than the daily average trading volume of about 1.3 million shares.
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TheStreet Ratings team rates TRI POINTE HOMES INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TRI POINTE HOMES INC (TPH) 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, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."