For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in M.D.C. Holdings, Inc. ten years ago? It may not have been easy to hold on to MDC for all that time, but if you did, how much would your investment be worth today?
M.D.C. Holdings, Inc.'s Business In-Depth
With that in mind, let's take a look at M.D.C. Holdings, Inc.'s main business drivers.
M.D.C. Holdings, Inc. or MDC is engaged in homebuilding and financial services in the United States. The company’s revenues are generated from Homebuilding (accounting for 97.7% of 2022 total revenues) and Financial Services (2.3%) operations.
MDC’s Homebuilding operations include land acquisition and development, home construction, sales and marketing as well as customer service. The segment delivers single-family detached homes to first-time and move-up buyers under the name “Richmond American Homes. There are three main reportable segments within the homebuilding reporting segment based on geographical presence: West (comprising Arizona, California, Nevada, Washington and Oregon), Mountain (comprising Colorado and Utah), and East (constituting mid-Atlantic, which includes Virginia, Maryland as well as Florida).
MDC’s Financial Services operations consist of two reportable segments namely, mortgage operations (which includes HomeAmerican) and other (all other operating segments). This segment mainly includes HomeAmerican Mortgage Corporation that originates mortgage loans primarily for homebuyers; Allegiant Insurance Company, Inc. that provides insurance coverage to its subsidiaries; StarAmerican Insurance Ltd. - a re-insurer of Allegiant claims; American Home Insurance Agency, Inc. that offers third-party insurance products to homebuyers; and American Home Title and Escrow Company, which provides title agency services to its subsidiaries and customers in certain states.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For M.D.C. Holdings, Inc. if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in January 2014 would be worth $2,710.14, or a gain of 171.01%, as of January 19, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 160.02% and the price of gold went up 58.17% over the same time frame.
Analysts are forecasting more upside for MDC too.
Although the shares of MDC have underperformed its industry in the past three months, the company is likely to benefit from the Build-to-Order process, which gives it a competitive edge over peers. This approach helps reduce inventory risk, enhances efficiencies in construction and provides predictability on future deliveries. To stay competitive in the current market condition, MDC is offering great opportunities for build-to-order buyers, such as long-term interest rate lock programs and other special incentives. Also, the company’s land acquisition strategies and high liquidity bode well. Earnings estimates for 2023 have increased in the past 60 days, depicting analysts’ optimism about the stock’s growth potential. However, high costs and a rising rate environment remain a concern.
Over the past four weeks, shares have rallied 16.39%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
Image: Bigstock
Here's How Much You'd Have If You Invested $1000 in M.D.C. Holdings, Inc. a Decade Ago
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in M.D.C. Holdings, Inc. ten years ago? It may not have been easy to hold on to MDC for all that time, but if you did, how much would your investment be worth today?
M.D.C. Holdings, Inc.'s Business In-Depth
With that in mind, let's take a look at M.D.C. Holdings, Inc.'s main business drivers.
M.D.C. Holdings, Inc. or MDC is engaged in homebuilding and financial services in the United States. The company’s revenues are generated from Homebuilding (accounting for 97.7% of 2022 total revenues) and Financial Services (2.3%) operations.
MDC’s Homebuilding operations include land acquisition and development, home construction, sales and marketing as well as customer service. The segment delivers single-family detached homes to first-time and move-up buyers under the name “Richmond American Homes. There are three main reportable segments within the homebuilding reporting segment based on geographical presence: West (comprising Arizona, California, Nevada, Washington and Oregon), Mountain (comprising Colorado and Utah), and East (constituting mid-Atlantic, which includes Virginia, Maryland as well as Florida).
MDC’s Financial Services operations consist of two reportable segments namely, mortgage operations (which includes HomeAmerican) and other (all other operating segments). This segment mainly includes HomeAmerican Mortgage Corporation that originates mortgage loans primarily for homebuyers; Allegiant Insurance Company, Inc. that provides insurance coverage to its subsidiaries; StarAmerican Insurance Ltd. - a re-insurer of Allegiant claims; American Home Insurance Agency, Inc. that offers third-party insurance products to homebuyers; and American Home Title and Escrow Company, which provides title agency services to its subsidiaries and customers in certain states.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For M.D.C. Holdings, Inc. if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in January 2014 would be worth $2,710.14, or a gain of 171.01%, as of January 19, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 160.02% and the price of gold went up 58.17% over the same time frame.
Analysts are forecasting more upside for MDC too.
Although the shares of MDC have underperformed its industry in the past three months, the company is likely to benefit from the Build-to-Order process, which gives it a competitive edge over peers. This approach helps reduce inventory risk, enhances efficiencies in construction and provides predictability on future deliveries. To stay competitive in the current market condition, MDC is offering great opportunities for build-to-order buyers, such as long-term interest rate lock programs and other special incentives. Also, the company’s land acquisition strategies and high liquidity bode well. Earnings estimates for 2023 have increased in the past 60 days, depicting analysts’ optimism about the stock’s growth potential. However, high costs and a rising rate environment remain a concern.
Over the past four weeks, shares have rallied 16.39%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.