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United Homes Group's Leadership Resignations Raise Valuation Concerns
ByAinvest
Tuesday, Oct 21, 2025 3:38 pm ET1min read
United Homes Group (UHG) is facing a wave of board resignations after several directors announced plans to step down by November 14, 2025. This follows a review of strategic alternatives and leadership disagreements. The company's share price has dropped by over 50% in the past month, with a one-year total shareholder return of -62.3%. UHG is trading at a price-to-earnings ratio of 23x, which is over twice the industry average, suggesting investors are pricing in aggressive expectations.
United Homes Group (UHG) is experiencing a significant wave of board resignations following a strategic review that concluded the homebuilder should remain an independent public company. Six directors, including committee chairs Robert Dozier Jr., Jason Enoch, and Alan Levine, along with James Pirrello, have announced their intention to step down by November 14, 2025. The resignations follow a disagreement with Executive Chairman Michael Nieri, the controlling stockholder, who refused to step down and forgo compensation as requested by the directors [1].The board members cited concerns that the current management team is better suited to navigate the market environment and address operational challenges without Mr. Nieri serving as Executive Chairman. Former UN Ambassador Nikki Haley also resigned, citing a desire to focus on other professional responsibilities, while James Clements resigned immediately to concentrate on other obligations [1].
The strategic review concluded that continuing as an independent, public company is in the best interests of UHG and its shareholders, given current macroeconomic conditions. Despite the resignations, UHG maintains strong financial health, with a current ratio of 3.91, indicating robust liquidity to meet short-term obligations [1].
In recent operational news, UHG reported mixed results for the third quarter of 2025. Net new orders declined by 5% year-over-year, while home starts increased by 65.9%. The company completed 262 home closings, a 29% decrease from the previous year. Over the first nine months of 2025, net new orders fell 11.8%, and closings decreased 19.7% compared to the previous year [1].
UHG's share price has dropped by over 50% in the past month, with a one-year total shareholder return of -62.3%. The company is currently trading at a price-to-earnings ratio of 23x, which is over twice the industry average, suggesting investors are pricing in aggressive expectations [1].
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