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

Zacks Investment Research lowered shares of M.D.C. (NYSE:MDC) from a buy rating to a hold rating in a research note issued to investors on Saturday morning, 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. “

Several other equities analysts have also recently weighed in on MDC. ValuEngine cut M.D.C. from a hold rating to a sell rating in a research report on Tuesday, January 22nd. Wedbush reiterated a neutral rating and issued a $30.00 price target on shares of M.D.C. in a research report on Wednesday, May 1st. Two investment analysts have rated the stock with a sell rating, two have given a hold rating and three have given a buy rating to the company. The stock currently has an average rating of Hold and a consensus target price of $33.50.

NYSE:MDC opened at $32.50 on Friday. The company has a debt-to-equity ratio of 0.68, a current ratio of 8.58 and a quick ratio of 2.49. M.D.C. has a 1 year low of $25.14 and a 1 year high of $33.47. The firm has a market capitalization of $2.00 billion, a price-to-earnings ratio of 8.86, a PEG ratio of 1.37 and a beta of 1.33.

M.D.C. (NYSE:MDC) last released its earnings results on Tuesday, April 30th. The construction company reported $0.64 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.59 by $0.05. M.D.C. had a return on equity of 14.20% and a net margin of 6.90%. The business had revenue of $647.28 million during the quarter, compared to the consensus estimate of $597.26 million. During the same period last year, the business posted $0.63 earnings per share. The business’s revenue for the quarter was up 6.5% on a year-over-year basis. On average, equities research analysts predict that M.D.C. will post 3.15 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 29th. Stockholders of record on Wednesday, May 15th will be given a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 3.69%. The ex-dividend date is Tuesday, May 14th. M.D.C.’s dividend payout ratio (DPR) is presently 30.25%.

In related news, Director David Siegel sold 2,900 shares of M.D.C. stock in a transaction on Thursday, March 7th. The stock was sold at an average price of $28.18, for a total transaction of $81,722.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO David D. Mandarich sold 55,000 shares of M.D.C. stock in a transaction on Monday, February 25th. The shares were sold at an average price of $29.65, for a total value of $1,630,750.00. The disclosure for this sale can be found here. Over the last quarter, insiders sold 259,707 shares of company stock valued at $7,739,189. 26.30% of the stock is owned by company insiders.

Large investors have recently bought and sold shares of the stock. JPMorgan Chase & Co. boosted its stake in M.D.C. by 26.1% during the third quarter. JPMorgan Chase & Co. now owns 240,131 shares of the construction company’s stock valued at $7,103,000 after buying an additional 49,732 shares during the period. Louisiana State Employees Retirement System boosted its stake in M.D.C. by 7.9% during the first quarter. Louisiana State Employees Retirement System now owns 18,300 shares of the construction company’s stock valued at $532,000 after buying an additional 1,339 shares during the period. CVentures Inc. bought a new stake in M.D.C. during the fourth quarter valued at $206,427,000. Meeder Asset Management Inc. bought a new stake in M.D.C. during the fourth quarter valued at $173,000. Finally, Vanguard Group Inc. boosted its stake in M.D.C. by 1.1% during the third quarter. Vanguard Group Inc. now owns 5,408,996 shares of the construction company’s stock valued at $159,998,000 after buying an additional 57,224 shares during the period. 84.84% of the stock is owned by institutional investors.

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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