Beazer Homes USA Inc. (BZH) expanding its growth trajectory ahead

Beazer Homes USA Inc. (NYSE: BZH) stock fell -1.35% on Monday to $25.50 against a previous-day closing price of $25.85. With 0.67 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.5 million shares. During the session, the Residential Construction company that operates in wider Consumer Cyclical sector, reached to the highest price of $26.25 whereas the lowest price it dropped to was $25.44. The 52-week range on BZH shows that it touched its highest point at $35.93 and its lowest point at $9.47 during that stretch. It currently has a 1-year price target of $35.33. Beta for the stock currently stands at 2.33.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BZH was down-trending over the past week, with a drop of -8.34%, but this was down by -15.90% over a month. Three-month performance surged to 14.30% while six-month performance rose 79.45%. The stock gained 112.50% in the past year, while it has gained 99.84% so far this year. A look at the trailing 12-month EPS for BZH yields 6.18 with Next year EPS estimates of 5.54. For the next quarter, that number is 1.39. This implies an EPS growth rate of 78.50% for this year and 16.45% for next year. EPS is expected to grow by 4.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 48.70%.

Float and Shares Shorts:

At present, 30.39 million BZH shares are outstanding with a float of 29.48 million shares on hand for trading. On Aug 30, 2023, short shares totaled 1.03 million, which was 3.29% higher than short shares on Jul 30, 2023. In addition to Mr. Allan P. Merrill as the firm’s Chairman, Pres & CEO, Mr. David I. Goldberg serves as its Sr. VP & CFO.

Institutional Ownership:

Other institutions hold 8.76% of BZH, in contrast to 38.69% held by mutual funds. Shares owned by individuals account for 37.63%. As the largest shareholder in BZH with 6.98% of the stake, BlackRock Fund Advisors holds 2,187,484 shares worth 2,187,484. A second-largest stockholder of BZH, Donald Smith & Co., Inc., holds 1,660,781 shares, controlling over 5.30% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in BZH, holding 1,659,813 shares or 5.30% stake. With a 5.30% stake in BZH, the American Funds Small Cap World Fu is the largest stakeholder. A total of 1,659,813 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.87% of BZH stock, is the second-largest Mutual Fund holder. It holds 900,475 shares valued at 26.39 million. iShares Russell 2000 ETF holds 2.10% of the stake in BZH, owning 659,455 shares worth 19.33 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, BZH reported revenue of $526.67M and operating income of $67.24M. The EBITDA in the recently reported quarter was $70.34M and diluted EPS was $1.76.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BZH since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With BZH analysts setting a high price target of $38.00 and a low target of $32.00, the average target price over the next 12 months is $35.33. Based on these targets, BZH could surge 49.02% to reach the target high and rise by 25.49% to reach the target low. Reaching the average price target will result in a growth of 38.55% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded BZH stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 16 over the past year. The total number of shares bought during that period was 495,781 while 150,103 shares were sold.

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