Dimensional Fund Advisors LP Purchases 51,284 Shares of Beazer Homes USA, Inc. $BZH

Key Points

• Dimensional Fund Advisors increased its Beazer Homes stake by 5.4%, acquiring 51,284 additional shares to own 999,804 shares, or 3.66% of the company. Institutional investors collectively hold 85.65% of BZH.
• Dream Finders Homes agreed to acquire Beazer Homes for $33.50 per share in cash, valuing the transaction at approximately $2.2 billion including debt. Completion remains subject to customary approvals, while shareholder investigations could create uncertainty.
• Beazer’s quarterly loss of $0.16 per share beat expectations, and revenue modestly exceeded estimates, but revenue declined 5.3% year over year and the company remained unprofitable. Analysts’ consensus rating is “Reduce,” with Oppenheimer downgrading the stock to “Market Perform.”

Dimensional Fund Advisors LP lifted its holdings in Beazer Homes USA, Inc. (NYSE:BZH - Free Report) by 5.4% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 999,804 shares of the construction company's stock after acquiring an additional 51,284 shares during the period. Dimensional Fund Advisors LP owned 3.66% of Beazer Homes USA worth $19,236,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Royal Bank of Canada increased its position in Beazer Homes USA by 1.8% during the first quarter. Royal Bank of Canada now owns 73,915 shares of the construction company's stock valued at $1,507,000 after acquiring an additional 1,279 shares during the last quarter. AQR Capital Management LLC grew its stake in shares of Beazer Homes USA by 35.5% during the first quarter. AQR Capital Management LLC now owns 198,855 shares of the construction company's stock valued at $4,055,000 after buying an additional 52,062 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Beazer Homes USA by 4.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,314 shares of the construction company's stock worth $353,000 after buying an additional 734 shares during the period. Rhumbline Advisers lifted its stake in shares of Beazer Homes USA by 1.4% during the 2nd quarter. Rhumbline Advisers now owns 46,206 shares of the construction company's stock worth $1,034,000 after acquiring an additional 642 shares during the last quarter. Finally, American Century Companies Inc. grew its position in Beazer Homes USA by 5.0% in the 2nd quarter. American Century Companies Inc. now owns 77,553 shares of the construction company's stock valued at $1,735,000 after acquiring an additional 3,673 shares during the last quarter. Institutional investors own 85.65% of the company's stock.

Analysts Set New Price Targets

Several analysts have recently weighed in on the stock. Oppenheimer downgraded shares of Beazer Homes USA from an "outperform" rating to a "market perform" rating in a research note on Friday. Wall Street Zen cut Beazer Homes USA from a "sell" rating to a "strong sell" rating in a report on Sunday, May 10th. Finally, Weiss Ratings upgraded Beazer Homes USA from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday, July 10th. Two analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Beazer Homes USA currently has a consensus rating of "Reduce".

Beazer Homes USA Price Performance

Shares of Beazer Homes USA stock opened at $33.17 on Friday. The company has a quick ratio of 1.32, a current ratio of 15.67 and a debt-to-equity ratio of 1.05. Beazer Homes USA, Inc. has a twelve month low of $17.83 and a twelve month high of $34.54. The business has a 50-day moving average price of $29.72 and a 200 day moving average price of $25.22. The firm has a market cap of $906.43 million, a PE ratio of -221.11 and a beta of 2.17.

Beazer Homes USA (NYSE:BZH - Get Free Report) last announced its quarterly earnings data on Monday, August 10th. The construction company reported ($0.16) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.34) by $0.18. The firm had revenue of $516.31 million during the quarter, compared to analyst estimates of $510.55 million. Beazer Homes USA had a negative net margin of 0.18% and a positive return on equity of 0.99%. Beazer Homes USA's quarterly revenue was down 5.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.26 earnings per share. Sell-side analysts predict that Beazer Homes USA, Inc. will post -0.41 earnings per share for the current fiscal year.

Beazer Homes USA News Summary

Here are the key news stories impacting Beazer Homes USA this week:

• Positive Sentiment: Takeover provides valuation support: Dream Finders Homes agreed to acquire Beazer in an all-cash transaction offering shareholders $33.50 per share. The deal values Beazer at approximately $2.2 billion including debt, or about $915 million on an equity-value basis. Reuters acquisition article
• Positive Sentiment: Quarterly results exceeded expectations: Beazer reported a fiscal third-quarter loss of $0.09 per share according to Zacks, beating the $0.34-per-share loss analysts expected. Revenue of approximately $516.3 million also topped estimates of $510.6 million. Zacks earnings article
• Neutral Sentiment: Deal completion remains the key focus: The proposed merger is subject to customary closing conditions and approvals. Because the offer is all cash and close to the current market value, trading is likely to be driven primarily by merger-certainty, closing-risk and the possibility of revised terms.
• Negative Sentiment: Underlying results remain soft: Quarterly revenue declined 5.3% from the prior year, while Beazer swung to a loss from year-ago earnings of $0.26 per share. The company also reported a negative net margin, highlighting continued operating pressure. Beazer Homes quarterly results
• Negative Sentiment: Shareholder investigations add uncertainty: Multiple law firms are investigating whether Beazer’s board fulfilled its fiduciary duties and obtained a fair price in the Dream Finders transaction. Such reviews could create legal costs, delay the merger or pressure the companies to improve deal terms. Halper Sadeh investigation

Beazer Homes USA Profile

Beazer Homes USA, Inc is a national homebuilder specializing in the design, construction and sale of single-family homes. The company serves a diverse range of buyers, offering product lines that span from entry-level homes to move-up and active adult communities. In addition to its core homebuilding operations, Beazer provides mortgage financing, title and closing services through its subsidiaries, aiming to simplify the home-buying process and manage risk across the transaction.

Operating in key growth markets across the United States, Beazer Homes maintains a presence in more than a dozen metropolitan areas, including select markets in the Southeast, Southwest and West.

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