Donald Smith & CO. Inc. Acquires New Stake in Beazer Homes USA, Inc. $BZH

Key Points

• Donald Smith & Co. acquired 2.81 million Beazer Homes shares worth approximately $78.9 million, giving it a 10.3% ownership stake and making BZH its 27th-largest portfolio holding.
• Institutional investors collectively own 85.65% of Beazer Homes. The stock opened at $33.16, near its 52-week high of $34.54, despite the company’s negative net margin and elevated debt-to-equity ratio of 1.23.
• Beazer Homes exceeded quarterly expectations with an adjusted loss of $0.16 per share versus the $0.34 consensus loss and revenue of $516.3 million, but revenue declined 5.3% year over year. Analyst sentiment remains mixed, with a consensus rating of Hold.

Donald Smith & CO. Inc. acquired a new stake in Beazer Homes USA, Inc. (NYSE:BZH - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 2,814,181 shares of the construction company's stock, valued at approximately $78,938,000. Beazer Homes USA comprises approximately 1.4% of Donald Smith & CO. Inc.'s portfolio, making the stock its 27th biggest position. Donald Smith & CO. Inc. owned approximately 10.30% of Beazer Homes USA as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also bought and sold shares of BZH. Rhumbline Advisers boosted its stake in shares of Beazer Homes USA by 1.4% during the second quarter. Rhumbline Advisers now owns 46,206 shares of the construction company's stock valued at $1,034,000 after purchasing an additional 642 shares during the period. State of Wyoming grew its holdings in shares of Beazer Homes USA by 18.5% in the fourth quarter. State of Wyoming now owns 4,523 shares of the construction company's stock worth $92,000 after purchasing an additional 706 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Beazer Homes USA by 4.4% in the 1st 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. Royal Bank of Canada increased its stake in Beazer Homes USA by 93.9% in the 4th quarter. Royal Bank of Canada now owns 1,883 shares of the construction company's stock worth $38,000 after buying an additional 912 shares during the period. Finally, Deutsche Bank AG increased its stake in Beazer Homes USA by 4.5% in the 4th quarter. Deutsche Bank AG now owns 25,097 shares of the construction company's stock worth $509,000 after buying an additional 1,076 shares during the period. Hedge funds and other institutional investors own 85.65% of the company's stock.

Beazer Homes USA Stock Performance

BZH stock opened at $33.16 on Friday. Beazer Homes USA, Inc. has a 1-year low of $17.83 and a 1-year high of $34.54. The business has a 50-day moving average price of $31.05 and a 200 day moving average price of $25.89. The company has a market capitalization of $884.71 million, a P/E ratio of -110.53 and a beta of 2.17. The company has a debt-to-equity ratio of 1.23, a current ratio of 14.64 and a quick ratio of 1.28.

Beazer Homes USA (NYSE:BZH - Get Free Report) last issued its earnings results on Friday, August 7th. The construction company reported ($0.16) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.34) by $0.18. The company had revenue of $516.31 million for the quarter, compared to analysts' expectations of $510.55 million. Beazer Homes USA had a negative net margin of 0.37% and a positive return on equity of 0.18%. The firm's quarterly revenue was down 5.3% on a year-over-year basis. During the same period in the prior year, the business earned $0.26 EPS. As a group, equities research analysts forecast that Beazer Homes USA, Inc. will post -0.33 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Weiss Ratings cut shares of Beazer Homes USA from a "sell (d+)" rating to a "sell (d)" rating in a research report on Tuesday, August 11th. Zacks Research raised shares of Beazer Homes USA from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 11th. Oppenheimer downgraded shares of Beazer Homes USA from an "outperform" rating to a "market perform" rating in a research note on Friday, August 7th. Wall Street Zen lowered Beazer Homes USA from a "sell" rating to a "strong sell" rating in a report on Sunday, May 10th. Finally, Texas Capital cut Beazer Homes USA from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold".

Beazer Homes USA Company 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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