Smith Douglas Homes (NYSE:SDHC) Cut to Strong Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Smith Douglas Homes from “hold” to “strong sell.” Other analysts have cut price targets to $10, though the overall consensus remains “Hold” with an average target of $11.38.
• Shares opened at $9.77, near their 12-month low of $9.60, and below both their 50-day ($10.40) and 200-day ($13.42) moving averages.
• The latest quarter’s earnings per share of $0.29 beat estimates of $0.09, but revenue of $262.51 million fell short of the $283.13 million consensus.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "strong sell" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

SDHC has been the topic of a number of other research reports. Royal Bank Of Canada decreased their price target on Smith Douglas Homes from $15.00 to $10.00 and set a "sector perform" rating on the stock in a research report on Thursday, October 15th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Smith Douglas Homes in a research report on Thursday, October 15th. Finally, Wells Fargo & Company reduced their target price on shares of Smith Douglas Homes from $14.00 to $10.00 and set an "equal weight" rating for the company in a report on Friday, October 16th. One investment analyst has rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $11.38.

Smith Douglas Homes Stock Performance

SDHC stock opened at $9.77 on Friday. The firm has a 50 day moving average of $10.40 and a 200-day moving average of $13.42. Smith Douglas Homes has a 12 month low of $9.60 and a 12 month high of $23.49.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last released its quarterly earnings data on Wednesday, November 4th. The company reported $0.29 earnings per share for the quarter, topping analysts' consensus estimates of $0.09 by $0.20. Smith Douglas Homes had a net margin of 0.64% and a negative return on equity of 0.19%. The company had revenue of $262.51 million during the quarter, compared to analyst estimates of $283.13 million. On average, analysts anticipate that Smith Douglas Homes will post 0.20 earnings per share for the current fiscal year.

Institutional Trading of Smith Douglas Homes

A number of institutional investors have recently bought and sold shares of SDHC. Conifer Management L.L.C. bought a new stake in shares of Smith Douglas Homes in the 2nd quarter valued at $22,274,259. Dimensional Fund Advisors LP purchased a new position in Smith Douglas Homes during the first quarter worth approximately $324,000. Integrity Alliance LLC. purchased a new position in shares of Smith Douglas Homes during the third quarter worth $158,000. Hsbc Holdings PLC purchased a new position in Smith Douglas Homes during the 1st quarter worth $168,000. Finally, Squarepoint Ops LLC raised its holdings in Smith Douglas Homes by 37.1% in the 2nd quarter. Squarepoint Ops LLC now owns 31,818 shares of the company's stock valued at $494,000 after acquiring an additional 8,606 shares during the last quarter.

Smith Douglas Homes Company Profile

Smith Douglas Homes, Inc is a residential homebuilder that designs, constructs and sells primarily single-family homes. The company serves a range of buyers, including first-time purchasers, move-up buyers and others seeking newly built homes in planned communities.

Its business activities include acquiring and developing residential land, planning communities, building homes and providing customers with selections of floor plans, finishes and other design options. Smith Douglas Homes generally offers homes at accessible price points across a variety of suburban and exurban settings.

Founded in 2008, the company operates in markets across the southeastern United States, including communities in Georgia, Alabama, Tennessee, North Carolina and Kentucky.

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