Beazer Homes USA (NYSE:BZH) Trading Down 8.7% Following Weak Earnings

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) shares fell 8.7% during trading on Friday following a weaker than expected earnings announcement. The stock traded as low as $20.80 and last traded at $21.45. 367,557 shares were traded during trading, a decline of 9% from the average session volume of 406,079 shares. The stock had previously closed at $23.50.

The construction company reported $0.26 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.42 by ($0.16). The company had revenue of $545.37 million for the quarter, compared to analyst estimates of $565.47 million. Beazer Homes USA had a return on equity of 7.81% and a net margin of 3.91%. The company's quarterly revenue was down 8.4% compared to the same quarter last year. During the same period in the prior year, the company earned $0.88 EPS.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on BZH shares. Wedbush reaffirmed an "outperform" rating and issued a $41.00 target price on shares of Beazer Homes USA in a report on Friday. B. Riley initiated 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. Finally, Oppenheimer restated an "outperform" rating and set a $33.00 price objective (down previously from $37.00) on shares of Beazer Homes USA in a research report on Tuesday, April 29th. Two research analysts have rated the stock with a sell rating, one has assigned a hold rating and two have given a buy rating to the stock. Based on data from MarketBeat, Beazer Homes USA has a consensus rating of "Hold" and an average price target of $32.33.

Insiders Place Their Bets

In related news, Director John J. Kelley III bought 10,000 shares of the stock in a transaction that occurred on Friday, May 9th. The stock was acquired at an average cost of $21.50 per share, with a total value of $215,000.00. Following the transaction, the director directly owned 15,917 shares in the company, valued at approximately $342,215.50. This trade represents a 169.00% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 6.52% of the stock is owned by corporate insiders.

Institutional Trading of Beazer Homes USA

A number of large investors have recently bought and sold shares of the business. AlphaQuest LLC grew its holdings in Beazer Homes USA by 58.3% during the 2nd quarter. AlphaQuest LLC now owns 4,300 shares of the construction company's stock worth $96,000 after acquiring an additional 1,583 shares during the period. Tweedy Browne Co LLC acquired a new stake in Beazer Homes USA during the 2nd quarter worth about $296,000. Atria Wealth Solutions Inc. grew its holdings in Beazer Homes USA by 3.6% during the 2nd quarter. Atria Wealth Solutions Inc. now owns 56,940 shares of the construction company's stock worth $1,274,000 after acquiring an additional 2,005 shares during the period. Total Clarity Wealth Management Inc. acquired a new stake in Beazer Homes USA during the 2nd quarter worth about $234,000. Finally, CWM LLC grew its holdings in Beazer Homes USA by 69.2% during the 2nd quarter. CWM LLC now owns 6,771 shares of the construction company's stock worth $151,000 after acquiring an additional 2,769 shares during the period. 85.65% of the stock is currently owned by institutional investors and hedge funds.

Beazer Homes USA Stock Performance

The company has a debt-to-equity ratio of 0.88, a quick ratio of 0.96 and a current ratio of 13.07. The stock has a fifty day simple moving average of $22.69 and a two-hundred day simple moving average of $22.38. The stock has a market capitalization of $650.51 million, a price-to-earnings ratio of 6.94, a P/E/G ratio of 0.65 and a beta of 2.09.

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.

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