Beazer Homes USA (NYSE:BZH) Lowered to “Strong Sell” Rating by Wall Street Zen

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

BZH has been the topic of a number of other reports. Zacks Research raised Beazer Homes USA from a “strong sell” rating to a “hold” rating in a research 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 equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, Beazer Homes USA currently has a consensus rating of “Hold” and a consensus price target of $31.33.

Beazer Homes USA Stock Down 10.9%

BZH stock opened at $21.58 on Friday. The firm has a market cap of $636.68 million, a PE ratio of 71.92, a PEG ratio of 1.03 and a beta of 2.18. Beazer Homes USA has a 1 year low of $17.37 and a 1 year high of $27.29. The company has a fifty day simple moving average of $22.23 and a 200 day simple moving average of $23.27. The company has a current ratio of 16.21, a quick ratio of 2.07 and a debt-to-equity ratio of 0.82.

Beazer Homes USA (NYSE:BZH) last posted its earnings results on Thursday, January 29th. The construction company reported ($1.13) earnings per share for the quarter, missing the consensus estimate of ($0.49) by ($0.64). The company had revenue of $363.49 million during 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%.The firm’s revenue for the quarter was down 22.5% compared to the same quarter last year. During the same quarter last year, the firm posted $0.10 earnings per share. Sell-side analysts anticipate that Beazer Homes USA will post 3.48 EPS for the current fiscal year.

Hedge Funds Weigh In On Beazer Homes USA

Several institutional investors have recently added to or reduced their stakes in BZH. State of Alaska Department of Revenue bought a new position in shares of Beazer Homes USA in the third quarter valued at about $37,000. Comerica Bank bought a new position in shares of Beazer Homes USA in the third quarter worth about $48,000. Osaic Holdings Inc. raised its stake in shares of Beazer Homes USA by 454.9% in the second quarter. Osaic Holdings Inc. now owns 2,103 shares of the construction company’s stock worth $47,000 after acquiring an additional 1,724 shares during the last quarter. Aquatic Capital Management LLC acquired a new position in shares of Beazer Homes USA during the third quarter valued at $70,000. Finally, Tower Research Capital LLC TRC boosted its holdings in Beazer Homes USA by 123.4% in the second quarter. Tower Research Capital LLC TRC now owns 3,500 shares of the construction company’s stock valued at $78,000 after acquiring an additional 1,933 shares during the last quarter. 85.65% of the stock is owned by institutional investors.

Key Headlines Impacting Beazer Homes USA

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

About Beazer Homes USA

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.