Home Properties (HME) Stock Advancing on $7.6 Billion Acquisition by Loan Star Funds

NEW YORK (TheStreet) -- Shares of Home Properties Inc. (HME) are higher by 1.79% to $74.03 on heavy volume in mid-afternoon trading on Monday, after the self-administered and self-managed REIT announced that it is being acquired by the private equity firm Loan Star Funds for almost $7.6 billion.

"We believe this transaction with Loan Star Funds provides our stockholders with compelling value for their investment, consistent with our long term strategy," company CEO Edward Pettinella said in a statement announcing the acquisition.

So far today, 1.54 million shares of Home Properties have exchanged hands as compared to its average daily volume of 528,000 shares.

When the deal is completed Home Properties will be a privately held company. The transaction is expected to close during the 2015 fourth quarter.

Separately, TheStreet Ratings team rates HOME PROPERTIES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate HOME PROPERTIES INC (HME) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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