Zacks Investment Research Downgrades M.D.C. (MDC) to Hold
Zacks Investment Research downgraded shares of M.D.C. (NYSE:MDC) from a strong-buy rating to a hold rating in a report issued on Tuesday morning.
According to Zacks, “M.D.C. Holdings, Inc. engages in homebuilding and financial service businesses in the United States. It is engaged in the construction, sale and related financing of residential housing and the acquisition and development of land for use in the Denver, Phoenix, Maryland, Virginia, mid Atlantic region, Las Vegas, Dallas, California metropolitan areas. MDC’s homebuilding subsidiaries, which operate under the name Richmond American Homes, have built and financed the American Dream. MDC’s commitment to customer satisfaction, quality and value is reflected in each home its subsidiaries build. MDC is one of the largest homebuilders in the United States. The Company’s subsidiaries also provide mortgage financing, insurance and title services, primarily for Richmond American homebuyers, through Home American Mortgage Corporation, American Home Insurance Agency, Inc. and American Home Title and Escrow Company, respectively. “
Other equities research analysts have also issued research reports about the company. ValuEngine lowered M.D.C. from a strong-buy rating to a buy rating in a report on Thursday, November 2nd. Citigroup lowered their price objective on M.D.C. from $37.00 to $34.00 and set a neutral rating on the stock in a report on Friday, November 3rd. UBS Group reaffirmed a sell rating and issued a $32.00 price objective (up previously from $30.00) on shares of M.D.C. in a report on Wednesday, January 17th. Finally, Bank of America lifted their price objective on M.D.C. from $31.00 to $34.00 and gave the company an underperform rating in a report on Friday, February 2nd. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating and three have given a buy rating to the stock. M.D.C. has an average rating of Hold and an average price target of $33.71.
M.D.C. (NYSE:MDC) last released its quarterly earnings results on Thursday, February 1st. The construction company reported $0.43 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.68 by ($0.25). M.D.C. had a return on equity of 11.00% and a net margin of 5.50%. The company had revenue of $704.26 million for the quarter, compared to analysts’ expectations of $722.48 million. During the same period in the prior year, the business earned $0.78 EPS. The business’s quarterly revenue was down 1.7% compared to the same quarter last year. analysts expect that M.D.C. will post 2.91 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, February 21st. Shareholders of record on Wednesday, February 7th will be issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 4.02%. The ex-dividend date of this dividend is Tuesday, February 6th. This is a positive change from M.D.C.’s previous quarterly dividend of $0.25. M.D.C.’s payout ratio is currently 48.10%.
In other news, Director Herbert T. Buchwald sold 28,350 shares of M.D.C. stock in a transaction that occurred on Friday, December 15th. The shares were sold at an average price of $31.52, for a total transaction of $893,592.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director David Siegel sold 2,500 shares of M.D.C. stock in a transaction that occurred on Friday, December 8th. The shares were sold at an average price of $31.83, for a total transaction of $79,575.00. The disclosure for this sale can be found here. 25.30% of the stock is currently owned by insiders.
Several hedge funds have recently bought and sold shares of MDC. CVentures Inc. acquired a new stake in shares of M.D.C. during the 4th quarter valued at approximately $233,531,000. BlackRock Inc. lifted its position in shares of M.D.C. by 11.2% during the 4th quarter. BlackRock Inc. now owns 6,564,388 shares of the construction company’s stock valued at $209,273,000 after acquiring an additional 660,834 shares during the period. Vanguard Group Inc. lifted its position in shares of M.D.C. by 14.8% during the 2nd quarter. Vanguard Group Inc. now owns 4,347,875 shares of the construction company’s stock valued at $153,611,000 after acquiring an additional 561,481 shares during the period. Koch Industries Inc. acquired a new stake in shares of M.D.C. during the 2nd quarter valued at approximately $342,000. Finally, JPMorgan Chase & Co. lifted its position in shares of M.D.C. by 120.9% during the 3rd quarter. JPMorgan Chase & Co. now owns 547,871 shares of the construction company’s stock valued at $18,020,000 after acquiring an additional 299,904 shares during the period. Institutional investors own 73.84% of the company’s stock.
M.D.C. Company Profile
M.DC Holdings, Inc is engaged in two primary operations, including homebuilding and financial services. The Company’s segments include West, including segments located in Arizona, California, Nevada and Washington; Mountain, including segments located in Colorado and Utah; East, including segments located in Virginia, Florida and Maryland, which includes Pennsylvania and New Jersey; mortgage operations, including HomeAmerican Mortgage Corporation, and Other, which includes Allegiant Insurance Company, Inc, StarAmerican Insurance Ltd., American Home Insurance Agency, Inc and American Home Title and Escrow Company.
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