M.D.C. (MDC) Rating Lowered to Sell at Zacks Investment Research

M.D.C. (NYSE:MDC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a 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. “

MDC has been the topic of a number of other research reports. Wedbush raised their target price on M.D.C. from $31.00 to $32.00 and gave the stock a “neutral” rating in a report on Monday, November 12th. ValuEngine upgraded M.D.C. from a “sell” rating to a “hold” rating in a report on Wednesday, January 2nd. Evercore ISI upgraded M.D.C. to an “outperform” rating and cut their price objective for the company from $33.00 to $31.00 in a report 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 cut their price objective for the company from $38.00 to $32.00 in a report on Friday, September 21st. Finally, Bank of America set a $34.00 price objective on M.D.C. and gave the company a “buy” rating in a report on Thursday, October 11th. Two equities research 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. The stock currently has an average rating of “Hold” and an average target price of $33.86.

Shares of MDC opened at $30.24 on Tuesday. The company has a current ratio of 9.55, a quick ratio of 2.45 and a debt-to-equity ratio of 0.70. M.D.C. has a 1 year low of $25.14 and a 1 year high of $35.18. The stock has a market cap of $1.73 billion, a price-to-earnings ratio of 11.72, a P/E/G ratio of 0.46 and a beta of 1.25.

M.D.C. (NYSE:MDC) last issued its earnings results on Thursday, November 1st. The construction company reported $0.93 earnings per share (EPS) for the quarter, missing the Zacks’ 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 company had revenue of $766.03 million for the quarter, compared to the consensus estimate of $778.62 million. During the same quarter last year, the business posted $1.07 EPS. M.D.C.’s quarterly revenue was up 30.7% on a year-over-year basis. As a group, equities analysts predict that M.D.C. will post 3.87 earnings per share for the current year.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Truvestments Capital LLC acquired a new position in shares of M.D.C. during the 3rd quarter worth approximately $109,000. First Hawaiian Bank acquired a new position in shares of M.D.C. during the 3rd quarter worth approximately $139,000. Quantbot Technologies LP acquired a new position in shares of M.D.C. during the 3rd quarter worth approximately $235,000. Fox Run Management L.L.C. acquired a new position in shares of M.D.C. during the 4th quarter worth approximately $237,000. Finally, Kornitzer Capital Management Inc. KS acquired a new position in shares of M.D.C. during the 3rd quarter worth approximately $402,000. Hedge funds and other institutional investors own 78.62% 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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