Shares of Newport Beach’s William Lyon Homes Inc. were down 6% in afternoon trading Thursday on the heels of a report showing it posted lower-than-expected new home orders in the quarter ended Sept. 30.
The homebuilder said late Wednesday that it received orders for 834 homes during the past three months, up 27% from a year ago.
But the total was 91 homes short of a forecast by San Francisco’s JMP Securities LLC, the only company that follows William Lyon and releases its ratings to the public.
JMP, which has done investment banking for the builder, downgraded its rating on William Lyon shares to “market outperform” from “strong buy.” JMP initiated coverage of the builder in July with a “strong buy” rating.
William Lyon’s orders were up in California and Nevada in the quarter ended Sept. 30. Its orders in Arizona dropped 39% to 118 homes versus a year earlier.
In Arizona, the builder sold at two less locations than the prior year, while the number of developments rose in California and Nevada.
William Lyon’s shares have soared this year amid talk of a buyout by its primary shareholder, William Lyon. He later withdrew his bid for the homebuilder.
