Homebuilder and land developer Green Brick Partners (GRBK 0.27%) was likely eager to reach the weekend. As of late Thursday night, according to data compiled by S&P Global Market Intelligence, its shares had tumbled by 17% week to date. An analyst's downgrade certainly didn't do the stock any favors.
Scissor time
That morning, Alex Rygiel of Texas Capital Securities reduced his Green Brick recommendation by one peg, sliding it down to hold from his previous buy. In making the move, he set his price target at $71 per share.
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According to reports, Rygiel made the adjustment on the back of revised estimates for the entirety of Green Brick's 2025. He also cited a disadvantageous geographic mix for the construction and property development company, which in his view operates in relatively weaker markets in its home state of Texas.
The analyst added that his now-bearish outlook comes despite the anticipation of fresh Federal Reserve rate cuts, which often spur construction activity since they make borrowing money cheaper.
Third-quarter info incoming
We'll get a sharper picture of how Green Brick Partners is doing when the company publishes its third-quarter results. Fortunately we don't have long to wait, as it's scheduled to unveil these figures on Wednesday, Oct. 29.
