Smith Douglas Homes Corp. (NYSE:SDHC) Receives Average Recommendation of "Reduce" from Analysts

Key Points

• Analyst sentiment is cautious: Ten firms give Smith Douglas Homes an average “Reduce” rating, comprising two sells, seven holds, and one buy. The average 1-year price target is $13.90.
• Shares recently traded at $10.63, near the company’s 52-week low of $10.01 and well below its high of $23.49.
• Quarterly earnings missed expectations: Smith Douglas Homes reported $0.03 EPS versus the $0.11 consensus estimate, although revenue of $273.03 million exceeded expectations of $258.10 million.

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) has been assigned an average recommendation of "Reduce" from the ten research firms that are currently covering the firm, Marketbeat Ratings reports. Two analysts have rated the stock with a sell rating, seven have given a hold rating and one has issued a buy rating on the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is $13.90.

A number of analysts recently weighed in on the stock. Wall Street Zen raised shares of Smith Douglas Homes from a "sell" rating to a "hold" rating in a research note on Saturday, June 13th. Weiss Ratings restated a "sell (d+)" rating on shares of Smith Douglas Homes in a research note on Friday, July 17th.

Smith Douglas Homes Price Performance

Shares of SDHC stock opened at $10.63 on Friday. Smith Douglas Homes has a one year low of $10.01 and a one year high of $23.49. The stock has a fifty day moving average price of $13.74 and a 200 day moving average price of $13.54. The stock has a market cap of $540.32 million, a P/E ratio of 14.76 and a beta of 0.83.

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

Hedge Funds Weigh In On Smith Douglas Homes

Several hedge funds and other institutional investors have recently modified their holdings of SDHC. Conifer Management L.L.C. acquired a new stake in shares of Smith Douglas Homes during the second quarter worth approximately $22,274,259. Wasatch Advisors LP boosted its holdings in shares of Smith Douglas Homes by 6.2% in the 4th quarter. Wasatch Advisors LP now owns 1,249,857 shares of the company's stock worth $20,960,000 after acquiring an additional 72,525 shares in the last quarter. Marshall Wace LLP bought a new stake in Smith Douglas Homes during the 2nd quarter worth approximately $644,000. Dimensional Fund Advisors LP bought a new stake in Smith Douglas Homes during the 1st quarter worth approximately $324,000. Finally, Wellington Management Group LLP increased its holdings in Smith Douglas Homes by 2.2% during the 4th quarter. Wellington Management Group LLP now owns 1,176,973 shares of the company's stock valued at $19,738,000 after purchasing an additional 24,996 shares in 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. was founded in 2008 and is headquartered in Woodstock, Georgia.

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