Why Did Tri Pointe Homes (TPH) Stock Jump 25%? $4.5B Buyout Deal

Shares of Tri Pointe Homes, Inc. (NYSE: TPH) surged dramatically in Friday premarket trading after the company announced a landmark acquisition agreement with Japanese forestry and homebuilding giant Sumitomo Forestry Co., Ltd. (TSE: 1911). The all-cash deal, valued at approximately $4.5 billion, will see Sumitomo Forestry pay $47.00 per share for each common share of Tri Pointe Homes, a price that not only represents a significant premium to recent trading levels but also exceeds the company’s all-time high closing stock price.

The transaction marks one of the most consequential moves in the U.S. homebuilding sector in recent memory, combining two companies united by a shared commitment to quality construction, design-forward communities, and locally led operations.

Sumitomo Forestry’s $4.5B Offer: Deal Terms and Timeline

Announced on February 13, 2026, the merger agreement was unanimously approved by both companies’ boards. Under the terms, Tri Pointe Homes will become a wholly owned subsidiary of Sumitomo Forestry America, Inc., with the $47.00 per share offer representing a 29% premium to TPH’s February 12 closing price of $36.57 and a 42% premium to the stock’s 90-day VWAP.

The deal is not subject to a financing condition, and completion is expected in Q2 2026, pending stockholder and regulatory approvals. Following the close, TPH shares will be delisted from the New York Stock Exchange.

Sumitomo Forestry President Toshiro Mitsuyoshi framed the acquisition as central to the company’s “Mission TREEING 2030” strategy, which targets delivery of 23,000 homes annually in the U.S. by 2030. Tri Pointe delivered over 6,400 homes in 2024 and more than 58,000 units over its 17-year history, making it a transformative addition to Sumitomo Forestry’s existing portfolio of five U.S. homebuilders.

Tri Pointe will continue to operate as a distinct brand led by its existing management team, maintaining its Irvine, CA home office and 17 divisions.

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TPH Stock Snapshot: Premarket Move and Key Levels

As of premarket trading on February 13, 2026 at 8:47 AM EST, TPH shares were changing hands at $46.33, up +26.70% from the prior session’s close of $36.57, just shy of the $47.00 acquisition price, signaling strong market confidence the deal will close.

Prior to the announcement, TPH had a 52-week range of $27.90 to $37.86, meaning the offer price clears even the top of that range by a wide margin.

Heading into the announcement, TPH carried a trailing P/E of 10.79, EPS of $3.39, and a market cap of roughly $3.2 billion. The company had beaten analyst earnings estimates in each of Q1 through Q3 FY2025, with Q3 revenue coming in at $836.87 million.

The average analyst price target prior to the deal was $38.20, with the highest target at $46.00, meaning Sumitomo’s $47.00 offer topped even Wall Street’s most bullish projection, delivering a compelling all-cash exit for shareholders.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.