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M.D.C. Sees Unusually High Options Volume (NYSE:MDC)

Wednesday, September 16, 2020 | MarketBeat

M.D.C. Holdings, Inc. (NYSE:MDC) was the target of some unusual options trading on Tuesday. Investors purchased 460 put options on the company. This represents an increase of approximately 752% compared to the typical volume of 54 put options.

Several brokerages recently commented on MDC. Bank of America raised M.D.C. from a "neutral" rating to a "buy" rating and set a $57.00 price objective for the company in a report on Tuesday. Evercore ISI raised M.D.C. from an "in-line" rating to an "outperform" rating and set a $61.00 price target for the company in a report on Wednesday, July 29th. BofA Securities raised M.D.C. from a "neutral" rating to a "buy" rating and set a $57.00 price target for the company in a report on Tuesday. Zacks Investment Research raised M.D.C. from a "sell" rating to a "strong-buy" rating and set a $43.00 price target for the company in a report on Tuesday, July 14th. Finally, ValuEngine raised M.D.C. from a "strong sell" rating to a "sell" rating in a report on Tuesday, August 4th. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating, four have assigned a buy rating and two have assigned a strong buy rating to the company. The stock currently has an average rating of "Buy" and a consensus price target of $46.75.

In related news, Director David Siegel sold 7,095 shares of M.D.C. stock in a transaction on Friday, August 21st. The stock was sold at an average price of $46.40, for a total value of $329,208.00. Following the completion of the sale, the director now owns 25,473 shares of the company's stock, valued at $1,181,947.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Larry A. Mizel sold 110,224 shares of M.D.C. stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $44.82, for a total value of $4,940,239.68. Following the completion of the sale, the chief executive officer now directly owns 230,849 shares of the company's stock, valued at approximately $10,346,652.18. The disclosure for this sale can be found here. Insiders have sold 841,042 shares of company stock valued at $37,474,574 in the last quarter. 25.20% of the stock is owned by company insiders.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. grew its stake in M.D.C. by 1.0% in the first quarter. BlackRock Inc. now owns 9,173,269 shares of the construction company's stock worth $212,819,000 after purchasing an additional 88,352 shares in the last quarter. State Street Corp grew its stake in M.D.C. by 5.1% in the first quarter. State Street Corp now owns 1,898,583 shares of the construction company's stock worth $44,047,000 after purchasing an additional 91,592 shares in the last quarter. Hamlin Capital Management LLC grew its stake in M.D.C. by 100.0% in the second quarter. Hamlin Capital Management LLC now owns 1,593,691 shares of the construction company's stock worth $56,895,000 after purchasing an additional 796,773 shares in the last quarter. Balyasny Asset Management LLC bought a new position in M.D.C. in the second quarter worth approximately $37,057,000. Finally, Clark Capital Management Group Inc. grew its stake in M.D.C. by 125.0% in the second quarter. Clark Capital Management Group Inc. now owns 1,006,001 shares of the construction company's stock worth $35,914,000 after purchasing an additional 558,981 shares in the last quarter. 74.04% of the stock is currently owned by hedge funds and other institutional investors.

Shares of MDC traded up $0.67 during mid-day trading on Wednesday, reaching $47.39. 5,896 shares of the company's stock traded hands, compared to its average volume of 600,949. The stock has a market cap of $2.96 billion, a P/E ratio of 11.45, a P/E/G ratio of 1.20 and a beta of 1.57. The stock's 50-day moving average is $44.33 and its two-hundred day moving average is $34.54. M.D.C. has a 12 month low of $15.75 and a 12 month high of $48.99. The company has a debt-to-equity ratio of 0.63, a current ratio of 7.53 and a quick ratio of 2.01.

M.D.C. (NYSE:MDC) last released its earnings results on Tuesday, July 28th. The construction company reported $1.31 EPS for the quarter, beating analysts' consensus estimates of $0.83 by $0.48. The firm had revenue of $886.80 million for the quarter, compared to analysts' expectations of $806.74 million. M.D.C. had a return on equity of 14.75% and a net margin of 7.52%. The company's quarterly revenue was up 21.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.86 earnings per share. Research analysts predict that M.D.C. will post 4.69 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which was paid on Wednesday, August 26th. Stockholders of record on Wednesday, August 12th were paid a dividend of $0.33 per share. The ex-dividend date was Tuesday, August 11th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.79%. M.D.C.'s dividend payout ratio is 35.48%.

About M.D.C.

M.DC Holdings, Inc, through its subsidiaries, engages in the homebuilding and financial service businesses. Its homebuilding operations include purchasing finished lots or developing lots for the construction and sale primarily of single-family detached homes to first-time and first-time move-up homebuyers under the Richmond American Homes name.

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