Zacks Investment Research lowered shares of M.D.C. (NYSE:MDC) from a buy rating to a hold rating in a research report sent to investors on Saturday.
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 brokerages have also issued reports on MDC. ValuEngine raised M.D.C. from a sell rating to a hold rating in a research report on Monday, June 11th. Zelman & Associates raised M.D.C. from a hold rating to a buy rating in a research report on Friday, May 4th. Raymond James reaffirmed a buy rating and set a $39.00 target price (up from $35.00) on shares of M.D.C. in a research report on Tuesday, May 8th. JPMorgan Chase & Co. raised M.D.C. from an underweight rating to a neutral rating and set a $36.00 target price on the stock in a research report on Friday, July 13th. Finally, Wedbush reaffirmed a neutral rating and set a $30.00 target price (down from $33.00) on shares of M.D.C. in a research report on Friday, May 4th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and four have issued a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and a consensus price target of $35.38.
M.D.C. (NYSE:MDC) last announced its earnings results on Wednesday, August 1st. The construction company reported $1.12 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.85 by $0.27. The company had revenue of $749.60 million for the quarter, compared to analyst estimates of $713.27 million. M.D.C. had a return on equity of 13.82% and a net margin of 6.91%. M.D.C.’s revenue for the quarter was up 15.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.64 earnings per share. equities research analysts predict that M.D.C. will post 3.79 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Wednesday, August 22nd. Stockholders of record on Wednesday, August 8th were issued a dividend of $0.30 per share. The ex-dividend date of this dividend was Tuesday, August 7th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.68%. M.D.C.’s dividend payout ratio is 46.51%.
In other news, Director Michael A. Berman sold 20,000 shares of M.D.C. stock in a transaction on Thursday, August 23rd. The stock was sold at an average price of $32.67, for a total transaction of $653,400.00. Following the transaction, the director now owns 131,867 shares in the company, valued at $4,308,094.89. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Chairman Larry A. Mizel sold 10,000 shares of M.D.C. stock in a transaction on Wednesday, August 22nd. The shares were sold at an average price of $33.15, for a total value of $331,500.00. Following the transaction, the chairman now owns 121,867 shares in the company, valued at approximately $4,039,891.05. The disclosure for this sale can be found here. Insiders own 27.00% of the company’s stock.
Hedge funds have recently modified their holdings of the company. MUFG Americas Holdings Corp purchased a new position in shares of M.D.C. during the second quarter valued at $106,000. Optimum Investment Advisors purchased a new position in shares of M.D.C. during the first quarter valued at $123,000. Sun Life Financial INC purchased a new position in shares of M.D.C. during the second quarter valued at $140,000. Xact Kapitalforvaltning AB purchased a new position in shares of M.D.C. during the first quarter valued at $203,000. Finally, Amalgamated Bank purchased a new position in shares of M.D.C. during the second quarter valued at $204,000. Institutional investors and hedge funds own 78.15% of the company’s stock.
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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