Smith Douglas Homes Corp. (NYSE:SDHC) Stock Has Average Price Target of $11.38

Key Points

• Analyst sentiment is cautious: Nine analysts give Smith Douglas Homes an average “Hold” rating, with one sell, seven hold and one buy recommendation. The average 12-month price target is $11.38, above the stock’s $10.25 opening price.
• Recent target cuts highlight pressure on the stock: Wells Fargo and Royal Bank of Canada both lowered their price targets to $10, while Weiss Ratings reiterated a sell rating.
• Quarterly results were mixed: Smith Douglas Homes reported $0.03 in quarterly EPS, missing the $0.11 consensus estimate, although revenue of $273.03 million exceeded expectations of $258.10 million. The stock remains near its 12-month low of $9.71, versus a high of $23.49.

Shares of Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) have been given an average recommendation of "Hold" by the nine ratings firms that are presently covering the stock, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and one has given a buy rating to the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $11.38.

A number of equities research analysts have weighed in on SDHC shares. Wells Fargo & Company lowered their target price on 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. Weiss Ratings restated a "sell (d+)" rating on shares of Smith Douglas Homes in a research report on Thursday, October 15th. Finally, Royal Bank Of Canada decreased their target price on shares of 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.

Institutional Inflows and Outflows

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

Smith Douglas Homes Stock Up 0.1%

Shares of SDHC stock opened at $10.25 on Monday. The firm has a market cap of $521.01 million, a P/E ratio of 14.24 and a beta of 0.86. The company has a 50 day moving average of $10.64 and a 200-day moving average of $13.69. Smith Douglas Homes has a 12-month low of $9.71 and a 12-month high of $23.49.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last posted its 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 firm had revenue of $273.03 million for the quarter, compared to analysts' expectations of $258.10 million. Smith Douglas Homes had a negative return on equity of 0.19% and a net margin of 0.64%. As a group, equities analysts expect that Smith Douglas Homes will post 0.25 EPS for the current year.

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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