Beazer Homes USA (NYSE:BZH) Stock Price Down 8.7% After Earnings Miss

Key Points

• Beazer Homes USA experienced a significant stock drop of 8.7% following a disappointing earnings report, with earnings per share (EPS) of $0.26 falling short of expectations by $0.16.
• The company reported a quarterly revenue of $545.37 million, which was also below analyst estimates, reflecting an 8.4% decline compared to the same period last year.
• Analysts have set varying price targets for the stock, with Wedbush reaffirming an "outperform" rating at a target price of $41.00, while the consensus rating is currently "Hold" with an average target of $32.33.

Beazer Homes USA, Inc. (NYSE:BZH - Get Free Report) was down 8.7% during trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $20.80 and last traded at $21.45. Approximately 367,557 shares were traded during mid-day trading, a decline of 9% from the average daily volume of 406,079 shares. The stock had previously closed at $23.50.

The construction company reported $0.26 EPS for the quarter, missing analysts' consensus estimates of $0.42 by ($0.16). The firm had revenue of $545.37 million for the quarter, compared to the consensus estimate of $565.47 million. Beazer Homes USA had a net margin of 2.84% and a return on equity of 6.16%. The firm's revenue was down 8.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.88 earnings per share.

Wall Street Analysts Forecast Growth

BZH has been the topic of a number of recent analyst reports. Wedbush reiterated an "outperform" rating and issued a $41.00 target price on shares of Beazer Homes USA in a research note on Friday. Oppenheimer cut their price target on Beazer Homes USA from $33.00 to $30.00 and set an "outperform" rating on the stock in a research note on Monday. Finally, B. Riley started coverage on Beazer Homes USA in a research report on Monday, June 30th. They set a "neutral" rating and a $23.00 price objective on the stock. Two investment analysts have rated the stock with a sell rating, one has assigned a hold rating and two have given a buy rating to the company. Based on data from MarketBeat, Beazer Homes USA presently has a consensus rating of "Hold" and a consensus target price of $31.33.

Insider Activity at Beazer Homes USA

In other Beazer Homes USA news, Director John J. Kelley III acquired 10,000 shares of the business's stock in a transaction dated Friday, May 9th. The stock was acquired at an average cost of $21.50 per share, for a total transaction of $215,000.00. Following the completion of the transaction, the director directly owned 15,917 shares of the company's stock, valued at $342,215.50. This represents a 169.00% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 6.52% of the stock is owned by company insiders.

Institutional Trading of Beazer Homes USA

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Mill Road Capital Management LLC increased its position in shares of Beazer Homes USA by 81.0% during the fourth quarter. Mill Road Capital Management LLC now owns 666,058 shares of the construction company's stock worth $18,290,000 after purchasing an additional 297,989 shares in the last quarter. Norges Bank acquired a new position in Beazer Homes USA during the 4th quarter worth about $4,149,000. Algert Global LLC lifted its stake in Beazer Homes USA by 582.0% during the 4th quarter. Algert Global LLC now owns 160,008 shares of the construction company's stock worth $4,394,000 after acquiring an additional 136,548 shares in the last quarter. Readystate Asset Management LP acquired a new stake in Beazer Homes USA in the 1st quarter valued at about $2,210,000. Finally, Denali Advisors LLC raised its position in Beazer Homes USA by 198.5% in the 1st quarter. Denali Advisors LLC now owns 147,777 shares of the construction company's stock valued at $3,013,000 after purchasing an additional 98,277 shares in the last quarter. 85.65% of the stock is currently owned by hedge funds and other institutional investors.

Beazer Homes USA Trading Up 4.2%

The business has a fifty day moving average price of $22.74 and a 200 day moving average price of $22.21. The firm has a market cap of $701.94 million, a PE ratio of 10.52, a P/E/G ratio of 0.60 and a beta of 2.09. The company has a current ratio of 13.33, a quick ratio of 0.91 and a debt-to-equity ratio of 0.94.

About Beazer Homes USA

Beazer Homes USA, Inc operates as a homebuilder in the United States. It designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names. The company also sells its homes through commissioned new home sales counselors and independent brokers in Arizona, California, Nevada, Texas, Indiana, Delaware, Maryland, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina.