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

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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 Tuesday.

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 analysts have also weighed in on MDC. ValuEngine lowered M.D.C. from a hold rating to a sell rating in a research note on Tuesday, July 24th. JPMorgan Chase & Co. raised M.D.C. from an underweight rating to a neutral rating and set a $36.00 price objective for the company in a research note on Friday, July 13th. Wedbush dropped their price objective on M.D.C. from $34.00 to $33.00 and set a neutral rating for the company in a research note on Thursday, August 2nd. Finally, Bank of America raised M.D.C. from an underperform rating to a buy rating and increased their price objective for the company from $36.00 to $42.00 in a research note on Thursday, August 2nd. Two analysts have rated the stock with a sell rating, three have issued a hold rating and four have issued a buy rating to the company’s stock. The company has an average rating of Hold and a consensus target price of $34.43.

Shares of MDC opened at $26.70 on Tuesday. The company has a market capitalization of $1.67 billion, a price-to-earnings ratio of 10.35, a PEG ratio of 0.43 and a beta of 1.43. The company has a quick ratio of 2.49, a current ratio of 9.59 and a debt-to-equity ratio of 0.72. M.D.C. has a 1 year low of $26.45 and a 1 year high of $37.45.

M.D.C. (NYSE:MDC) last issued its earnings results on Wednesday, August 1st. The construction company reported $1.12 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.85 by $0.27. The business had revenue of $749.60 million during 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% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.64 earnings per share. Sell-side analysts anticipate that M.D.C. will post 3.79 earnings per share for the current fiscal year.

In other news, Chairman Larry A. Mizel sold 10,000 shares of the stock in a transaction that occurred on Wednesday, August 22nd. The stock was sold at an average price of $33.15, for a total transaction of $331,500.00. Following the completion of the sale, the chairman now owns 121,867 shares of the company’s stock, valued at $4,039,891.05. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Michael A. Berman sold 20,000 shares of the stock in a transaction that occurred on Thursday, August 23rd. The shares were sold at an average price of $32.67, for a total value of $653,400.00. Following the sale, the director now directly owns 131,867 shares of the company’s stock, valued at approximately $4,308,094.89. The disclosure for this sale can be found here. In the last three months, insiders have sold 50,000 shares of company stock valued at $1,637,300. Insiders own 27.00% of the company’s stock.

Several large investors have recently added to or reduced their stakes in the company. PNC Financial Services Group Inc. lifted its stake in M.D.C. by 8.7% in the second quarter. PNC Financial Services Group Inc. now owns 20,741 shares of the construction company’s stock worth $639,000 after acquiring an additional 1,661 shares during the period. Nisa Investment Advisors LLC lifted its stake in M.D.C. by 5.5% in the second quarter. Nisa Investment Advisors LLC now owns 34,766 shares of the construction company’s stock worth $1,070,000 after acquiring an additional 1,800 shares during the period. Great West Life Assurance Co. Can lifted its stake in M.D.C. by 3.4% in the first quarter. Great West Life Assurance Co. Can now owns 60,681 shares of the construction company’s stock worth $1,694,000 after acquiring an additional 1,970 shares during the period. Royal Bank of Canada lifted its stake in M.D.C. by 11.7% in the first quarter. Royal Bank of Canada now owns 19,791 shares of the construction company’s stock worth $553,000 after acquiring an additional 2,073 shares during the period. Finally, Rhumbline Advisers lifted its stake in M.D.C. by 2.3% in the second quarter. Rhumbline Advisers now owns 111,129 shares of the construction company’s stock worth $3,419,000 after acquiring an additional 2,496 shares during the period. 77.54% of the stock is owned by hedge funds and other 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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