Gen. William Lyon may have dropped his bid to buy the rest of Newport Beach-based homebuilder William Lyon Homes Inc., but shares of the company showed they’re still prone to spikes on Monday.
The stock closed up 14% Monday after an analyst at JMP Securities started covering the company as a “strong buy.”
The rating is based on strong growth in orders for new homes, according to JMP.
Last week, William Lyon Homes said new home orders for the quarter ended June 30 were 1,154, up 2% from last year.
The company’s big gain came in California, where orders for the quarter ended up 17%.
William Lyon Homes has been the subject of a takeover drama in recent weeks.
In May Chairman William Lyon offered $82 for each share outside his control. After a board rejection and a heavy runup in the stock, Lyon withdrew his offer late last month.
William Lyon Homes shares closed at $112 Monday.
