Zacks Investment Research Lowers M.D.C. (NYSE:MDC) to Hold

Zacks Investment Research cut shares of M.D.C. (NYSE:MDC) from a buy rating to a hold rating in a research note published on Tuesday, Zacks.com reports.

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 stock. Wedbush assumed coverage on shares of Uber Technologies in a research note on Wednesday, May 1st. They issued an outperform rating and a $65.00 price objective for the company. ValuEngine lowered shares of Intersect ENT from a buy rating to a hold rating in a research note on Monday. Finally, JPMorgan Chase & Co. raised shares of M.D.C. from an underweight rating to a neutral rating in a research report on Monday. Two investment analysts have rated the stock with a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company. The stock currently has a consensus rating of Buy and a consensus target price of $33.80.

Shares of MDC stock traded up $0.25 on Tuesday, hitting $36.73. The company’s stock had a trading volume of 209 shares, compared to its average volume of 483,402. The company has a debt-to-equity ratio of 0.68, a current ratio of 8.58 and a quick ratio of 2.19. M.D.C. has a fifty-two week low of $25.14 and a fifty-two week high of $36.89. The firm’s fifty day moving average price is $32.94. The firm has a market cap of $2.25 billion, a PE ratio of 10.03, a price-to-earnings-growth ratio of 1.31 and a beta of 1.15.

M.D.C. (NYSE:MDC) last released its quarterly earnings data on Tuesday, April 30th. The construction company reported $0.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.59 by $0.05. M.D.C. had a net margin of 6.90% and a return on equity of 14.20%. The business had revenue of $647.28 million during the quarter, compared to analyst estimates of $597.26 million. During the same quarter in the previous year, the business earned $0.63 EPS. M.D.C.’s quarterly revenue was up 6.5% compared to the same quarter last year. As a group, equities analysts predict that M.D.C. will post 3.33 EPS for the current fiscal year.

In other M.D.C. news, Director Herbert T. Buchwald sold 15,618 shares of the business’s stock in a transaction on Friday, June 14th. The shares were sold at an average price of $33.51, for a total transaction of $523,359.18. Following the completion of the transaction, the director now owns 15,000 shares of the company’s stock, valued at approximately $502,650. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director David Siegel sold 27,128 shares of the business’s stock in a transaction on Tuesday, May 7th. The stock was sold at an average price of $31.94, for a total transaction of $866,468.32. Following the transaction, the director now directly owns 30,618 shares of the company’s stock, valued at approximately $977,938.92. The disclosure for this sale can be found here. In the last three months, insiders have sold 234,962 shares of company stock valued at $7,671,544. Company insiders own 26.30% of the company’s stock.

A number of institutional investors have recently added to or reduced their stakes in MDC. Penserra Capital Management LLC bought a new position in shares of M.D.C. during the 1st quarter worth about $56,000. Quantamental Technologies LLC increased its holdings in shares of M.D.C. by 2,807.7% during the 1st quarter. Quantamental Technologies LLC now owns 5,641 shares of the construction company’s stock worth $164,000 after purchasing an additional 5,447 shares during the period. 6 Meridian bought a new position in shares of M.D.C. during the 1st quarter worth about $207,000. Magnus Financial Group LLC bought a new position in shares of M.D.C. during the 4th quarter worth about $208,000. Finally, CIBC Asset Management Inc bought a new position in shares of M.D.C. during the 1st quarter worth about $212,000. 74.68% of the stock is owned by hedge funds and other institutional investors.

About M.D.C.

M.DC Holdings, Inc, through its subsidiaries, engages in the homebuilding and financial service businesses. Its homebuilding operations include purchasing finished lots or developing lots for the construction and sale primarily of single-family detached homes to first-time and first-time move-up homebuyers under the Richmond American Homes name.

Further Reading: Beta

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