Bank of America Issues Positive Forecast for Smith Douglas Homes (NYSE:SDHC) Stock Price

Key Points

• Bank of America has raised its price target for Smith Douglas Homes (NYSE:SDHC) from $16.00 to $17.00 while maintaining an "underperform" rating on the stock, suggesting a potential downside of 7.18% from the last close.
• Smith Douglas Homes recently reported a quarterly loss of ($0.13) EPS, missing analyst estimates of $0.25, despite revenue surpassing expectations at $223.92 million.
• The company has initiated a $50 million stock buyback program, indicating management's belief that the shares are undervalued, and several hedge funds have increased their stakes in the company.

Smith Douglas Homes (NYSE:SDHC - Free Report) had its price objective raised by Bank of America from $16.00 to $17.00 in a report released on Thursday morning,Benzinga reports. Bank of America currently has an underperform rating on the stock.

Several other equities research analysts also recently weighed in on SDHC. Wall Street Zen downgraded shares of Smith Douglas Homes from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. JPMorgan Chase & Co. decreased their price objective on shares of Smith Douglas Homes from $24.00 to $18.50 and set a "neutral" rating for the company in a report on Wednesday, May 21st. Four analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Smith Douglas Homes has a consensus rating of "Reduce" and a consensus price target of $17.90.

Smith Douglas Homes Trading Down 0.5%

NYSE SDHC traded down $0.09 during trading hours on Thursday, reaching $18.41. 96,503 shares of the company traded hands, compared to its average volume of 66,115. The stock has a market capitalization of $947.19 million, a PE ratio of 11.58, a PEG ratio of 12.15 and a beta of 1.06. The company has a 50 day moving average of $19.69 and a two-hundred day moving average of $19.43. Smith Douglas Homes has a 12 month low of $16.28 and a 12 month high of $39.46.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The company reported ($0.13) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.38). The business had revenue of $223.92 million during the quarter, compared to analyst estimates of $216.01 million. Smith Douglas Homes had a net margin of 1.43% and a return on equity of 1.74%. On average, equities research analysts anticipate that Smith Douglas Homes will post 1.73 earnings per share for the current year.

Smith Douglas Homes announced that its Board of Directors has approved a stock buyback program on Wednesday, May 28th that allows the company to buyback $50.00 million in outstanding shares. This buyback authorization allows the company to buy up to 5.1% of its shares through open market purchases. Shares buyback programs are often a sign that the company's management believes its stock is undervalued.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Tower Research Capital LLC TRC purchased a new stake in Smith Douglas Homes in the 2nd quarter valued at about $90,000. Wasatch Advisors LP increased its position in shares of Smith Douglas Homes by 4.4% in the second quarter. Wasatch Advisors LP now owns 1,279,357 shares of the company's stock valued at $24,845,000 after acquiring an additional 53,358 shares during the period. Raymond James Financial Inc. bought a new stake in shares of Smith Douglas Homes during the 2nd quarter valued at about $34,000. Marshall Wace LLP bought a new stake in Smith Douglas Homes during the second quarter worth about $644,000. Finally, First Trust Advisors LP raised its holdings in shares of Smith Douglas Homes by 5.8% during the second quarter. First Trust Advisors LP now owns 29,025 shares of the company's stock valued at $564,000 after purchasing an additional 1,583 shares during the last quarter.

Smith Douglas Homes Company Profile

Smith Douglas Homes Corp., together with its subsidiaries, engages in the design, construction, and sale of single-family homes in the southeastern United States. It also provides closing, escrow, and title insurance services. The company sells its products to entry-level and empty-nest homebuyers. Smith Douglas Homes Corp.