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

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

Several other brokerages also recently commented on MDC. ValuEngine downgraded shares of M.D.C. from a sell rating to a strong sell rating in a research report on Friday, August 3rd. JPMorgan Chase & Co. raised shares of M.D.C. from an underweight rating to a neutral rating and set a $36.00 price objective for the company in a research report on Friday, July 13th. Bank of America set a $34.00 price objective on shares of M.D.C. and gave the stock a buy rating in a research report on Thursday, October 11th. Finally, Wedbush reduced their price objective on shares of M.D.C. from $34.00 to $31.00 and set a neutral rating for the company in a research report on Friday, November 2nd. Two investment analysts have rated the stock with a sell rating, two have assigned a hold rating and five have assigned a buy rating to the stock. M.D.C. presently has an average rating of Hold and an average price target of $33.71.

M.D.C. stock traded down $0.14 during mid-day trading on Tuesday, hitting $28.73. 492,909 shares of the stock were exchanged, compared to its average volume of 586,247. The company has a debt-to-equity ratio of 0.70, a quick ratio of 2.45 and a current ratio of 9.55. M.D.C. has a 12 month low of $25.14 and a 12 month high of $36.33. The firm has a market cap 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. (NYSE:MDC) last released its quarterly earnings results on Thursday, November 1st. The construction company reported $0.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.95 by ($0.02). M.D.C. had a return on equity of 12.96% and a net margin of 6.21%. The firm had revenue of $766.03 million for the quarter, compared to the consensus estimate of $778.62 million. During the same quarter in the previous year, the business posted $1.07 EPS. The firm’s revenue for the quarter was up 30.7% compared to the same quarter last year. As a group, equities research analysts predict that M.D.C. will post 3.87 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 21st. Stockholders of record on Wednesday, November 7th will be given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 4.18%. The ex-dividend date is Tuesday, November 6th. M.D.C.’s dividend payout ratio (DPR) is 46.51%.

In related news, Director Michael A. Berman sold 20,000 shares of M.D.C. stock in a transaction 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 completion of the sale, the director now owns 131,867 shares of the company’s stock, valued at approximately $4,308,094.89. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 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 transaction of $331,500.00. Following the completion of the sale, the chairman now directly owns 121,867 shares of the company’s stock, valued at approximately $4,039,891.05. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 50,000 shares of company stock valued at $1,637,300. Insiders own 27.00% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. grew its position in M.D.C. by 0.7% in the 3rd quarter. BlackRock Inc. now owns 7,983,118 shares of the construction company’s stock valued at $236,141,000 after purchasing an additional 56,428 shares during the period. LSV Asset Management grew its position in M.D.C. by 49.8% in the 2nd quarter. LSV Asset Management now owns 2,220,833 shares of the construction company’s stock valued at $68,335,000 after purchasing an additional 737,965 shares during the period. Bank of New York Mellon Corp grew its position in M.D.C. by 2.5% in the 3rd quarter. Bank of New York Mellon Corp now owns 1,165,818 shares of the construction company’s stock valued at $34,486,000 after purchasing an additional 28,974 shares during the period. Allianz Asset Management GmbH grew its position in M.D.C. by 7.1% in the 1st quarter. Allianz Asset Management GmbH now owns 992,047 shares of the construction company’s stock valued at $27,698,000 after purchasing an additional 65,574 shares during the period. Finally, Northern Trust Corp grew its position in M.D.C. by 6.9% in the 2nd quarter. Northern Trust Corp now owns 921,981 shares of the construction company’s stock valued at $28,369,000 after purchasing an additional 59,127 shares during the period. 77.55% of the stock is 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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