M.D.C. (MDC) Trading Down 5.9% After Earnings Miss

M.D.C. Holdings, Inc. (NYSE:MDC) fell 5.9% during trading on Friday following a dissappointing earnings announcement. The company traded as low as $31.34 and last traded at $32.01. 1,372,903 shares were traded during trading, an increase of 112% from the average session volume of 648,039 shares. The stock had previously closed at $34.01.

The construction company reported $0.43 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.68 by ($0.25). M.D.C. had a return on equity of 11.66% and a net margin of 6.09%. The company had revenue of $704.26 million for the quarter, compared to the consensus estimate of $722.48 million. During the same period in the previous year, the firm earned $0.78 earnings per share. The company’s revenue was down 1.7% compared to the same quarter last year.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, February 21st. Shareholders of record on Wednesday, February 7th will be paid a dividend of $0.30 per share. This is a boost from M.D.C.’s previous quarterly dividend of $0.25. This represents a $1.20 annualized dividend and a yield of 3.75%. The ex-dividend date of this dividend is Tuesday, February 6th. M.D.C.’s payout ratio is presently 33.37%.

Several brokerages have weighed in on MDC. Bank of America boosted their price objective on M.D.C. from $31.00 to $34.00 and gave the stock an “underperform” rating in a research note on Friday. Zacks Investment Research raised M.D.C. from a “hold” rating to a “strong-buy” rating and set a $38.00 price objective on the stock in a research note on Thursday. UBS Group reissued a “sell” rating and set a $32.00 price objective (up from $30.00) on shares of M.D.C. in a research note on Wednesday, January 17th. Citigroup reduced their price objective on M.D.C. from $37.00 to $34.00 and set a “neutral” rating on the stock in a research note on Friday, November 3rd. Finally, ValuEngine cut M.D.C. from a “strong-buy” rating to a “buy” rating in a research note on Thursday, November 2nd. Three investment analysts have rated the stock with a sell rating, five have given a hold rating, one has issued a buy rating and one has assigned a strong buy rating to the company. The stock presently has an average rating of “Hold” and a consensus price target of $33.50.

In other M.D.C. news, Director Herbert T. Buchwald sold 28,350 shares of the business’s stock in a transaction that occurred on Friday, December 15th. The stock was sold at an average price of $31.52, for a total transaction of $893,592.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David Siegel sold 2,500 shares of the business’s stock in a transaction that occurred on Friday, December 8th. The shares were sold at an average price of $31.83, for a total value of $79,575.00. The disclosure for this sale can be found here. 25.30% of the stock is owned by insiders.

Several large investors have recently made changes to their positions in MDC. Amalgamated Bank purchased a new stake in shares of M.D.C. in the second quarter valued at approximately $202,000. Parsec Financial Management Inc. purchased a new stake in shares of M.D.C. in the fourth quarter valued at approximately $203,000. Quantitative Systematic Strategies LLC purchased a new stake in shares of M.D.C. in the fourth quarter valued at approximately $260,000. Sawgrass Asset Management LLC purchased a new stake in shares of M.D.C. in the third quarter valued at approximately $262,000. Finally, Parametrica Management Ltd purchased a new stake in shares of M.D.C. in the third quarter valued at approximately $285,000. Institutional investors and hedge funds own 73.12% of the company’s stock.

The company has a current ratio of 9.45, a quick ratio of 2.60 and a debt-to-equity ratio of 0.65. The stock has a market capitalization of $1,891.08 and a price-to-earnings ratio of 11.49.

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About M.D.C.

M.DC Holdings, Inc is engaged in two primary operations, including homebuilding and financial services. The Company’s segments include West, including segments located in Arizona, California, Nevada and Washington; Mountain, including segments located in Colorado and Utah; East, including segments located in Virginia, Florida and Maryland, which includes Pennsylvania and New Jersey; mortgage operations, including HomeAmerican Mortgage Corporation, and Other, which includes Allegiant Insurance Company, Inc, StarAmerican Insurance Ltd., American Home Insurance Agency, Inc and American Home Title and Escrow Company.

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