Smith Douglas Homes (NYSE:SDHC) Stock Price Target Cut by Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut Smith Douglas Homes’ price target from $15 to $10 while maintaining a “sector perform” rating, implying roughly 2.5% downside from the prior close.
• Analyst sentiment remains cautious: the stock has an average “Hold” rating and a consensus price target of $12.38, while Weiss Ratings reiterated a “sell (d+)” rating.
• Smith Douglas Homes reported quarterly EPS of $0.03, below the $0.11 consensus estimate, despite revenue of $273.03 million exceeding expectations. Shares recently traded at $10.26, near their 52-week low of $9.71.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) had its price target decreased by equities research analysts at Royal Bank Of Canada from $15.00 to $10.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage currently has a "sector perform" rating on the stock. Royal Bank Of Canada's target price points to a potential downside of 2.53% from the stock's previous close.

Separately, Weiss Ratings reissued a "sell (d+)" rating on shares of Smith Douglas Homes in a research report on Friday, July 17th. One equities research analyst has rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $12.38.

Smith Douglas Homes Stock Performance

Shares of Smith Douglas Homes stock traded up $0.48 during trading on Thursday, hitting $10.26. The company's stock had a trading volume of 5,962 shares, compared to its average volume of 87,838. Smith Douglas Homes has a 52 week low of $9.71 and a 52 week high of $23.49. The company has a market capitalization of $521.52 million, a PE ratio of 14.25 and a beta of 0.90. The company has a fifty day simple moving average of $11.44 and a two-hundred day simple moving average of $12.98.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.03 EPS for the quarter, missing the consensus estimate of $0.11 by ($0.08). Smith Douglas Homes had a negative return on equity of 0.19% and a net margin of 0.64%. The business had revenue of $273.03 million for the quarter, compared to the consensus estimate of $258.10 million. As a group, analysts predict that Smith Douglas Homes will post 0.25 EPS for the current year.

Hedge Funds Weigh In On Smith Douglas Homes

A number of hedge funds have recently bought and sold shares of the business. Ruane Cunniff & Goldfarb L.P. grew its position in shares of Smith Douglas Homes by 18.7% during the 1st quarter. Ruane Cunniff & Goldfarb L.P. now owns 14,490 shares of the company's stock valued at $185,000 after acquiring an additional 2,281 shares during the period. Squarepoint Ops LLC increased its stake in shares of Smith Douglas Homes by 37.1% in the 2nd quarter. Squarepoint Ops LLC now owns 31,818 shares of the company's stock worth $494,000 after purchasing an additional 8,606 shares in the last quarter. Hsbc Holdings PLC bought a new position in Smith Douglas Homes in the 1st quarter worth $168,000. Dimensional Fund Advisors LP bought a new position in Smith Douglas Homes in the 1st quarter worth $324,000. Finally, Conifer Management L.L.C. bought a new position in Smith Douglas Homes in the 2nd quarter worth $22,274,259.

Smith Douglas Homes Company Profile

Smith Douglas Homes Corp. is a residential homebuilder that designs, constructs and sells single-family homes in selected markets across the southeastern and southern United States. The company focuses primarily on building attainable homes for first-time and move-up buyers.

Its homes are offered in a range of floor plans and configurations, with options intended to address varying household sizes, lifestyles and budgets. In addition to constructing homes, Smith Douglas Homes typically acquires and develops residential lots, manages the homebuilding process and provides customer service to homebuyers.

Founded in 2008, the company has expanded its operations across several markets, including communities in Georgia, Alabama, Tennessee, North Carolina and Texas.

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