Persimmon shares up as housebuilder says trading in line

Persimmon shares (LSE: PSN) rose on Tuesday after the UK housebuilder said trading and completions were in line with expectations despite ongoing challenges.

The company said in a trading update that performance since July 1 has been consistent with views, though house completions continue to lag previous years.

Persimmon completed 1,439 homes in the third quarter, a 37% decrease from 2,270 last year. The company said it still anticipates around 9,500 total completions for 2023, down 16% year-on-year.

CEO Dean Finch noted Persimmon remains “on track to deliver” the projected volume at an operating margin like the first half. He said the firm continues prioritizing costs amid a likely “challenging” near-term market.

Looking ahead, Persimmon expects conditions to stay uncertain into 2024 but believes its focus on quality, sustainable homes at below-average prices positions it well long-term.

Shares rose over 6% Tuesday morning on the update. But the stock is still down nearly 10% over the last year as the housing sector faces macroeconomic headwinds.