Beazer Homes USA's (BZH) Outperform Rating Reaffirmed at Wedbush

Key Points

• Wedbush has reaffirmed Beazer Homes USA's stock rating as "outperform" with a price target of $41.00, indicating a potential upside of 91.12% from its previous close.
• Beazer Homes USA reported Q2 earnings of $0.26 per share, which missed expectations by $0.16, and noted an 8.4% revenue decline year-over-year.
• Insider activity includes a significant purchase by Director John J. Kelley III, who bought 10,000 shares, raising his ownership by 169%.

Beazer Homes USA (NYSE:BZH - Get Free Report)'s stock had its "outperform" rating restated by research analysts at Wedbush in a note issued to investors on Friday,RTT News reports. They presently have a $41.00 price objective on the construction company's stock. Wedbush's price objective would suggest a potential upside of 91.12% from the company's previous close.

A number of other research firms also recently issued reports on BZH. Oppenheimer reiterated an "outperform" rating and set a $33.00 price objective (down from $37.00) on shares of Beazer Homes USA in a report on Tuesday, April 29th. B. Riley initiated coverage on Beazer Homes USA in a research note on Monday, June 30th. They set a "neutral" rating and a $23.00 target price on the stock. Two analysts have rated the stock with a sell rating, one has assigned a hold rating and two have assigned a buy rating to the company. According to data from MarketBeat, Beazer Homes USA presently has a consensus rating of "Hold" and a consensus price target of $32.33.

Beazer Homes USA Price Performance

Shares of Beazer Homes USA stock traded down $2.05 during midday trading on Friday, reaching $21.45. The company had a trading volume of 367,557 shares, compared to its average volume of 406,079. The stock has a fifty day simple moving average of $22.69 and a 200 day simple moving average of $22.38. The company has a current ratio of 13.07, a quick ratio of 0.96 and a debt-to-equity ratio of 0.88. The company has a market capitalization of $650.00 million, a price-to-earnings ratio of 6.95, a price-to-earnings-growth ratio of 0.65 and a beta of 2.09. Beazer Homes USA has a 1-year low of $17.37 and a 1-year high of $38.22.

Beazer Homes USA (NYSE:BZH - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The construction company reported $0.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.16). The company had revenue of $545.37 million during the quarter, compared to the consensus estimate of $565.47 million. Beazer Homes USA had a return on equity of 7.81% and a net margin of 3.91%. The firm's revenue for the quarter was down 8.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.88 earnings per share. As a group, equities research analysts forecast that Beazer Homes USA will post 3.48 earnings per share for the current year.

Insider Buying and Selling

In related news, Director John J. Kelley III bought 10,000 shares of the business's stock in a transaction that occurred on Friday, May 9th. The shares were bought at an average price of $21.50 per share, with a total value of $215,000.00. Following the completion of the transaction, the director directly owned 15,917 shares in the company, valued at approximately $342,215.50. This represents a 169.00% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 6.52% of the company's stock.

Hedge Funds Weigh In On Beazer Homes USA

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

Beazer Homes USA Company Profile

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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