Zacks Investment Research Upgrades M.D.C. (MDC) to Hold

Zacks Investment Research upgraded shares of M.D.C. (NYSE:MDC) from a sell rating to a hold rating in a research report report 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. “

MDC has been the topic of a number of other reports. ValuEngine cut M.D.C. from a hold rating to a sell rating in a research note on Tuesday, July 24th. Wedbush lowered their target price on M.D.C. from $34.00 to $33.00 and set a neutral rating on the stock in a research note on Thursday, August 2nd. Evercore ISI upgraded M.D.C. to an outperform rating and lowered their target price for the stock from $33.00 to $31.00 in a research note on Thursday, October 25th. They noted that the move was a valuation call. JPMorgan Chase & Co. cut M.D.C. from a neutral rating to an underweight rating and lowered their target price for the stock from $38.00 to $32.00 in a research note on Friday, September 21st. Finally, Bank of America upgraded M.D.C. from an underperform rating to a buy rating and lifted their target price for the stock from $36.00 to $42.00 in a research note on Thursday, August 2nd. Two research analysts have rated the stock with a sell rating, two have issued a hold rating and five have assigned a buy rating to the stock. The stock has a consensus rating of Hold and an average target price of $33.71.

Shares of NYSE MDC traded down $0.14 during mid-day trading on Tuesday, reaching $28.73. 492,909 shares of the company’s stock were exchanged, compared to its average volume of 586,247. The stock has a market capitalization of $1.66 billion, a price-to-earnings ratio of 11.14, a PEG ratio of 0.43 and a beta of 1.40. M.D.C. has a 52 week low of $25.14 and a 52 week high of $36.33. The company has a debt-to-equity ratio of 0.70, a current ratio of 9.55 and a quick ratio of 2.45.

M.D.C. (NYSE:MDC) last released its earnings results on Thursday, November 1st. The construction company reported $0.93 EPS for the quarter, missing the Zacks’ consensus estimate of $0.95 by ($0.02). The business had revenue of $766.03 million for the quarter, compared to the consensus estimate of $778.62 million. M.D.C. had a return on equity of 12.96% and a net margin of 6.21%. The company’s revenue for the quarter was up 30.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.07 earnings per share. Research analysts expect that M.D.C. will post 3.87 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 21st. Investors of record on Wednesday, November 7th will be paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 4.18%. The ex-dividend date is Tuesday, November 6th. M.D.C.’s dividend payout ratio is currently 46.51%.

In related news, Chairman Larry A. Mizel sold 10,000 shares of the business’s stock in a transaction dated Wednesday, August 22nd. The stock was sold at an average price of $33.15, for a total value of $331,500.00. Following the sale, the chairman now directly owns 121,867 shares in the company, valued at approximately $4,039,891.05. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Chairman Larry A. Mizel sold 20,000 shares of the business’s stock in a transaction dated Monday, August 27th. The shares were 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 owns 131,867 shares in the company, valued at $4,301,501.54. The disclosure for this sale can be found here. Insiders sold a total of 50,000 shares of company stock worth $1,637,300 over the last 90 days. 27.00% of the stock is currently owned by company insiders.

A number of institutional investors have recently made changes to their positions in MDC. MUFG Americas Holdings Corp bought a new stake in M.D.C. in the 2nd quarter valued at about $106,000. Truvestments Capital LLC bought a new stake in M.D.C. in the 3rd quarter valued at about $109,000. First Hawaiian Bank bought a new stake in M.D.C. in the 3rd quarter valued at about $139,000. Sun Life Financial INC bought a new stake in M.D.C. in the 2nd quarter valued at about $140,000. Finally, Xact Kapitalforvaltning AB bought a new stake in M.D.C. in the 1st quarter valued at about $203,000. Institutional investors and hedge funds own 77.55% of the company’s stock.

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.

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