M.D.C. (NYSE:MDC) Upgraded to Strong-Buy by Zacks Investment Research

Zacks Investment Research upgraded shares of M.D.C. (NYSE:MDC) from a hold rating to a strong-buy rating in a research note released on Wednesday, Zacks.com reports. Zacks Investment Research currently has $42.00 price target on the construction company’s stock.

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 analysts have also commented on MDC. ValuEngine lowered shares of Intersect ENT from a buy rating to a hold rating in a research report on Monday. JPMorgan Chase & Co. upgraded shares of M.D.C. from an underweight rating to a neutral rating in a research report on Monday. Finally, Wedbush began coverage on shares of Uber Technologies in a research report on Wednesday, May 1st. They set an outperform rating and a $65.00 price target on the stock. Two research analysts have rated the stock with a hold rating, three have given a buy rating and one has assigned a strong buy rating to the stock. M.D.C. presently has a consensus rating of Buy and a consensus target price of $33.80.

MDC stock traded down $0.12 during midday trading on Wednesday, hitting $36.48. 391,171 shares of the stock traded hands, compared to its average volume of 412,259. The firm has a market capitalization of $2.22 billion, a price-to-earnings ratio of 9.94, a P/E/G ratio of 1.43 and a beta of 1.15. The company has a debt-to-equity ratio of 0.68, a quick ratio of 2.19 and a current ratio of 8.58. The company’s fifty day moving average is $32.94. M.D.C. has a 1-year low of $25.14 and a 1-year high of $36.89.

M.D.C. (NYSE:MDC) last released its quarterly earnings results on Tuesday, April 30th. The construction company reported $0.64 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.59 by $0.05. The company had revenue of $647.28 million for the quarter, compared to analyst estimates of $597.26 million. M.D.C. had a net margin of 6.90% and a return on equity of 14.20%. The firm’s revenue was up 6.5% on a year-over-year basis. During the same quarter last year, the business earned $0.63 earnings per share. Sell-side analysts anticipate that M.D.C. will post 3.16 EPS for the current year.

In other news, Director Herbert T. Buchwald sold 30,618 shares of M.D.C. stock in a transaction dated Thursday, May 2nd. The shares were sold at an average price of $32.38, for a total value of $991,410.84. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director David Siegel sold 27,128 shares of M.D.C. stock in a transaction dated Tuesday, May 7th. The shares were sold at an average price of $31.94, for a total transaction of $866,468.32. Following the completion of the sale, the director now owns 30,618 shares in the company, valued at approximately $977,938.92. The disclosure for this sale can be found here. In the last quarter, insiders sold 234,962 shares of company stock worth $7,671,544. Company insiders own 26.30% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in MDC. Norges Bank acquired a new stake in shares of M.D.C. in the fourth quarter valued at about $17,223,000. Bank of New York Mellon Corp boosted its position in M.D.C. by 27.3% during the fourth quarter. Bank of New York Mellon Corp now owns 1,483,767 shares of the construction company’s stock worth $41,708,000 after acquiring an additional 317,949 shares during the last quarter. Millennium Management LLC boosted its position in M.D.C. by 209.1% during the fourth quarter. Millennium Management LLC now owns 287,754 shares of the construction company’s stock worth $8,089,000 after acquiring an additional 194,662 shares during the last quarter. Deutsche Bank AG boosted its position in M.D.C. by 134.6% during the fourth quarter. Deutsche Bank AG now owns 254,857 shares of the construction company’s stock worth $7,162,000 after acquiring an additional 146,234 shares during the last quarter. Finally, LSV Asset Management boosted its position in M.D.C. by 6.2% during the first quarter. LSV Asset Management now owns 2,329,186 shares of the construction company’s stock worth $67,686,000 after acquiring an additional 135,607 shares during the last quarter. Institutional investors and hedge funds own 74.68% of the company’s stock.

About M.D.C.

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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