Century Communities Reaches a New 52-Week Low – Understanding the Reasons

Century Communities, Inc. (NYSE:CCS) hit a new 52-week low in midday trading on Friday, reaching a low of $71.86 before closing at $73.10. The trading volume for the day was 42,493 shares, showing a bit of activity compared to its previous closing price of $72.68.

Recent Analyst Ratings

Several analysts have made recent adjustments to their rating of Century Communities. On December 5th, StockNews.com downgraded the stock from a "hold" to a "sell" rating. However, on October 24th, B. Riley reaffirmed a "buy" rating, increasing its price target to $119.00 from $113.00. Also on October 24th, Wedbush raised their target from $90.00 to $96.00 and maintained a "neutral" rating. In a more recent report on December 13th, JPMorgan Chase upgraded Century Communities from an "underweight" to a "neutral" rating and set a price target of $97.00, down from $110.00.

Trading Performance and Financial Ratios

As of now, Century Communities has a market cap of $2.27 billion, a price-to-earnings (P/E) ratio of 7.23, and a beta of 1.91, indicating a higher volatility compared to the market. The company's 50-day simple moving average stands at $84.54, while the 200-day moving average is $91.08. Financially, Century has a current and quick ratio of 0.63, and a debt-to-equity ratio of 0.44, suggesting a relatively stable financial position.

Quarterly Earnings Announcement

Century Communities released its quarterly earnings results on October 23rd, reporting earnings per share (EPS) of $2.72, surpassing the consensus estimate of $2.56 by $0.16. The company recorded a net margin of 7.44% and a return on equity of 13.79%. Revenue for the quarter reached $1.10 billion, aligning with analysts' expectations. This marked a 23.7% increase in revenue from the same quarter the previous year, driven by continued growth in the housing sector.

Dividend Declaration

The company recently declared a quarterly dividend, which was paid to shareholders on December 11th. The dividend was set at $0.26 per share, resulting in an annualized dividend of $1.04, giving it a yield of 1.43%. The ex-dividend date was November 27th, and the payout ratio for Century Communities is reported at 10.37%.

Institutional Investor Activity

Institutional investor interest in Century Communities has been noteworthy, with some firms recently adjusting their positions. Point72 Hong Kong Ltd entered a new position worth approximately $51,000 during the third quarter, while GAMMA Investing LLC increased its stake by 37.6%. Other firms, such as Daiwa Securities Group and ZWJ Investment Counsel, also made new purchases, further demonstrating the institutional interest in this stock. Overall, institutional investors own approximately 99.54% of Century Communities' shares.

Company Overview

Century Communities, Inc. is involved in the design, development, construction, marketing, and sale of both single-family attached and detached homes. Aside from home building, they also manage the land development process and offer mortgage, title, and insurance services to their customers, strengthening their role in the housing market.

Century, Communities, Stock