Zacks Investment Research upgraded shares of M.D.C. (NYSE:MDC) from a sell rating to a hold rating in a research note published 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. “
A number of other research analysts have also recently weighed in on MDC. JPMorgan Chase & Co. raised M.D.C. from an underweight rating to a neutral rating and set a $36.00 price objective on the stock in a research report on Friday, July 13th. ValuEngine raised M.D.C. from a sell rating to a hold rating in a report on Wednesday, July 18th. Bank of America raised M.D.C. from an underperform rating to a buy rating and boosted their price target for the stock from $36.00 to $42.00 in a report on Thursday, August 2nd. Finally, Wedbush lowered their price target on M.D.C. from $34.00 to $33.00 and set a neutral rating on the stock in a report on Thursday, August 2nd. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and five have given a buy rating to the company. The stock has an average rating of Hold and an average target price of $34.00.
M.D.C. (NYSE:MDC) last posted its quarterly earnings data on Wednesday, August 1st. The construction company reported $1.12 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.85 by $0.27. M.D.C. had a return on equity of 13.82% and a net margin of 6.91%. The firm had revenue of $749.60 million for the quarter, compared to analysts’ expectations of $713.27 million. During the same period in the previous year, the firm earned $0.64 EPS. The business’s quarterly revenue was up 15.5% on a year-over-year basis. On average, equities research analysts expect that M.D.C. will post 3.79 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 21st. Investors of record on Wednesday, November 7th will be issued a $0.30 dividend. The ex-dividend date is Tuesday, November 6th. This represents a $1.20 dividend on an annualized basis and a yield of 4.32%. M.D.C.’s dividend payout ratio is presently 46.51%.
In related news, Chairman Larry A. Mizel sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 22nd. The stock was sold at an average price of $33.15, for a total value of $331,500.00. Following the transaction, the chairman now directly owns 121,867 shares of the company’s stock, valued at approximately $4,039,891.05. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Chairman Larry A. Mizel sold 20,000 shares of M.D.C. stock in a transaction that occurred on Monday, August 27th. The stock was sold at an average price of $32.62, for a total value of $652,400.00. Following the completion of the sale, the chairman now directly owns 131,867 shares in the company, valued at approximately $4,301,501.54. The disclosure for this sale can be found here. Over the last three months, insiders sold 50,000 shares of company stock worth $1,637,300. 27.00% of the stock is owned by insiders.
A number of large investors have recently added to or reduced their stakes in MDC. MUFG Americas Holdings Corp bought a new stake in M.D.C. in the 2nd quarter worth approximately $106,000. Truvestments Capital LLC bought a new stake in M.D.C. in the 3rd quarter worth approximately $109,000. First Hawaiian Bank bought a new stake in M.D.C. in the 3rd quarter worth approximately $139,000. Sun Life Financial INC bought a new stake in M.D.C. in the 2nd quarter worth approximately $140,000. Finally, Xact Kapitalforvaltning AB bought a new stake in M.D.C. in the 1st quarter worth approximately $203,000. 77.43% of the stock is currently owned by institutional investors and hedge funds.
M.D.C. Company Profile
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.
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