Beazer Homes USA (NYSE:BZH) Cut to “Strong Sell” at Wall Street Zen

Beazer Homes USA (NYSE:BZH) was downgraded by research analysts at Wall Street Zen from a “hold” rating to a “strong sell” rating in a report issued on Saturday.

Other equities research analysts have also issued reports about the stock. Zacks Research upgraded shares of Beazer Homes USA from a “strong sell” rating to a “hold” rating in a report on Friday, January 16th. Weiss Ratings restated a “hold (c)” rating on shares of Beazer Homes USA in a research report on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Beazer Homes USA has a consensus rating of “Hold” and a consensus target price of $31.33.

Beazer Homes USA Stock Performance

Shares of Beazer Homes USA stock opened at $21.58 on Friday. The company has a debt-to-equity ratio of 0.82, a quick ratio of 2.07 and a current ratio of 16.21. Beazer Homes USA has a 52 week low of $17.37 and a 52 week high of $27.29. The firm has a fifty day moving average of $22.23 and a two-hundred day moving average of $23.27. The stock has a market capitalization of $636.68 million, a price-to-earnings ratio of 71.92, a PEG ratio of 1.03 and a beta of 2.18.

Beazer Homes USA (NYSE:BZH) last posted its earnings results on Thursday, January 29th. The construction company reported ($1.13) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.49) by ($0.64). The company had revenue of $363.49 million for the quarter, compared to analyst estimates of $423.23 million. Beazer Homes USA had a return on equity of 2.10% and a net margin of 0.44%.Beazer Homes USA’s quarterly revenue was down 22.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.10 earnings per share. As a group, equities research analysts predict that Beazer Homes USA will post 3.48 EPS for the current year.

Institutional Investors Weigh In On Beazer Homes USA

Hedge funds and other institutional investors have recently made changes to their positions in the stock. State of Alaska Department of Revenue acquired a new position in Beazer Homes USA in the 3rd quarter worth $37,000. Osaic Holdings Inc. raised its stake in shares of Beazer Homes USA by 454.9% in the 2nd quarter. Osaic Holdings Inc. now owns 2,103 shares of the construction company’s stock valued at $47,000 after purchasing an additional 1,724 shares during the period. Comerica Bank bought a new stake in shares of Beazer Homes USA in the third quarter valued at about $48,000. Aquatic Capital Management LLC acquired a new position in shares of Beazer Homes USA during the third quarter worth about $70,000. Finally, Tower Research Capital LLC TRC boosted its position in shares of Beazer Homes USA by 123.4% during the second quarter. Tower Research Capital LLC TRC now owns 3,500 shares of the construction company’s stock worth $78,000 after buying an additional 1,933 shares during the period. 85.65% of the stock is currently owned by institutional investors and hedge funds.

Key Beazer Homes USA News

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

• Positive Sentiment: Liquidity and balance-sheet metrics provide some cushion — BZH shows a high current ratio and a quick ratio above 2, which may help weather a weak housing cycle. (Background company filings)
• Neutral Sentiment: Management hosted an earnings call and provided slides/notes; investors will parse the call transcript for details on backlog, cancellations and how management plans to adjust community growth plans. Earnings Call Transcript
• Negative Sentiment: Big EPS and revenue miss — Beazer reported a Q1 loss materially worse than expected (about a $0.90–$1.13 loss vs. consensus near -$0.49) and revenue down ~22% year-over-year, signaling weaker demand. Why Beazer Homes Stock Just Crashed
• Negative Sentiment: Margin compression — gross margins dropped (reported around mid-teens), hurting profitability and implying cost or pricing pressure even as volumes fall. Beazer Homes: Q1 Miss Adds To Value Trap Fears
• Negative Sentiment: Operational and demand risks highlighted — analysts and SA commentary point to declining orders, rising cancellations and weaker housing demand that undermine the company’s aggressive community growth and buyback posture. Value Trap Fears
• Negative Sentiment: Market reaction and volume — the stock is trading down on heavy volume, reflecting investor sell-side and retail concern after the miss and the outlook/strategy questions. (Market trading data and press release) Press Release / Slide Deck

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.