Rafferty Asset Management LLC significantly increased its investment in Century Communities, Inc. (NYSE:CCS) by 78.6% during the third quarter of 2023, according to its recent 13F filing with the Securities and Exchange Commission. The institutional investor now holds 38,972 shares of the construction company, adding 17,157 shares in the period. As of the latest filing, Rafferty’s stake in Century Communities is valued at approximately $2.47 million.
Other institutional investors also made notable adjustments to their positions in Century Communities. US Bancorp DE increased its shareholding by an impressive 840.8%, acquiring an additional 4,347 shares to bring its total to 4,864 shares, worth around $308,000. Similarly, Heartland Advisors Inc. raised its stake by 8.7%, owning 456,003 shares valued at $28.9 million after purchasing 36,521 shares during the quarter.
Additionally, Denali Advisors LLC entered a new position valued at about $1.38 million, while JPMorgan Chase & Co. increased its holdings by 26.8%, now owning 338,699 shares worth around $21.46 million after acquiring 71,688 shares. New South Capital Management Inc. also acquired a new stake valued at approximately $10.03 million. Overall, institutional investors own 99.54% of Century Communities’ stock.
Chairman Sells Shares Amid Increased Investor Interest
In related news, Century Communities’ Chairman, Dale Francescon, sold 100,100 shares of the company on February 12, 2024, at an average price of $72.44, totaling approximately $7.25 million. Following this transaction, Francescon retains 561,662 shares valued at around $40.69 million, marking a 15.13% decrease in his ownership.
The company’s insider ownership stands at 11.90%.
Strong Earnings and Dividend Increase
Century Communities recently reported its quarterly earnings on January 28, 2024. The company posted an earnings per share (EPS) of $1.59, surpassing analysts’ expectations of $1.39 by $0.20. The firm also achieved a net margin of 3.58% and a return on equity of 6.87%. During the quarter, Century Communities generated revenues of $1.23 billion, exceeding the consensus estimate of $1.04 billion. However, this reflects a 3.1% decline compared to the same quarter in the previous year.
Looking ahead, analysts forecast that Century Communities will report an EPS of $11.07 for the current fiscal year.
Additionally, the company announced an increase in its quarterly dividend, which is set to be paid on March 11, 2024. Shareholders on record as of February 25, 2024, will receive a dividend of $0.32 per share, up from the previous dividend of $0.29. This change represents an annualized dividend of $1.28 and a yield of 2.0%. The company’s dividend payout ratio currently stands at 26.34%.
Analyst Ratings and Market Outlook
Recent commentary from equity analysts has reflected varied perspectives on Century Communities’ stock. Analysts at Citizens JMP initiated coverage with a “market outperform” rating, targeting a price of $92.00. Meanwhile, Citigroup also started coverage with an “outperform” rating. In contrast, Zacks Research downgraded the stock from “hold” to “strong sell.” JPMorgan Chase & Co. adjusted its price target down from $56.00 to $49.00 while maintaining an “underweight” rating.
Currently, three research analysts have assigned a “buy” rating, two have indicated a “hold,” and two have rated the stock as a “sell.” According to data from MarketBeat.com, Century Communities holds a consensus rating of “hold” with an average price target of $74.75.
Founded in 2009 and headquartered in Greenwood Village, Colorado, Century Communities specializes in the construction and sale of both single-family and multi-family homes. The company has rapidly expanded its presence across high-growth markets in the United States through strategic acquisitions and organic growth, providing a comprehensive homebuying experience that includes mortgage financing and insurance products.
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