Smith Douglas Homes (NYSE:SDHC) Price Target Raised to $17.00

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 target raised by Bank of America from $16.00 to $17.00 in a report released on Thursday,Benzinga reports. They currently have an underperform rating on the stock.

Other research analysts have also recently issued reports about the stock. JPMorgan Chase & Co. dropped 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 research note on Wednesday, May 21st. Wall Street Zen lowered shares of Smith Douglas Homes from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Four equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Reduce" and a consensus target price of $17.90.

Smith Douglas Homes Trading Down 5.2%

Shares of SDHC stock traded down $0.97 on Thursday, reaching $17.49. 103,173 shares of the company's stock were exchanged, compared to its average volume of 76,132. The company's fifty day simple moving average is $19.69 and its 200 day simple moving average is $19.41. The stock has a market capitalization of $899.60 million, a PE ratio of 11.00, a P/E/G ratio of 12.12 and a beta of 1.05. Smith Douglas Homes has a 52 week low of $16.28 and a 52 week high of $39.46.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported ($0.13) EPS for the quarter, missing analysts' consensus estimates of $0.25 by ($0.38). Smith Douglas Homes had a return on equity of 1.74% and a net margin of 1.43%.The firm had revenue of $223.92 million for the quarter, compared to analyst estimates of $216.01 million. As a group, sell-side analysts predict that Smith Douglas Homes will post 1.73 earnings per share for the current fiscal year.

Smith Douglas Homes announced that its Board of Directors has authorized a share repurchase plan on Wednesday, May 28th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 5.1% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Jane Street Group LLC boosted its position in Smith Douglas Homes by 69.9% during the fourth quarter. Jane Street Group LLC now owns 23,837 shares of the company's stock valued at $611,000 after purchasing an additional 9,805 shares in the last quarter. Millennium Management LLC boosted its position in shares of Smith Douglas Homes by 50.0% during the 4th quarter. Millennium Management LLC now owns 56,459 shares of the company's stock worth $1,448,000 after acquiring an additional 18,810 shares in the last quarter. Two Sigma Investments LP lifted its holdings in shares of Smith Douglas Homes by 366.3% in the 4th quarter. Two Sigma Investments LP now owns 27,550 shares of the company's stock valued at $706,000 after purchasing an additional 21,642 shares during the last quarter. M&T Bank Corp raised its stake in shares of Smith Douglas Homes by 8.4% during the 1st quarter. M&T Bank Corp now owns 11,001 shares of the company's stock worth $215,000 after buying an additional 848 shares in the last quarter. Finally, New York State Common Retirement Fund grew its holdings in shares of Smith Douglas Homes by 1.0% in the 1st quarter. New York State Common Retirement Fund now owns 185,119 shares of the company's stock worth $3,614,000 after acquiring an additional 1,744 shares during the period.

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.