Smith Douglas Homes Corp. (NYSE:SDHC) Stock Rated "Reduce" by Sell-Side Analysts

Key Points

• Analysts rate Smith Douglas Homes “Reduce” overall: Of 10 covering firms, two recommend selling, seven recommend holding and one recommends buying. The average 12-month price target is $13.90.
• The stock opened at $9.92, near its one-year low of $9.75 and below its 50-day and 200-day moving averages of $11.95 and $13.05, respectively.
• Smith Douglas Homes reported quarterly EPS of $0.03, missing the $0.11 consensus estimate, although revenue of $273.03 million exceeded expectations of $258.10 million. Several institutional investors recently initiated or increased positions in the company.

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

A number of research firms recently issued reports on SDHC. Wall Street Zen raised Smith Douglas Homes from a "sell" rating to a "hold" rating in a report on Saturday, June 13th. Weiss Ratings reissued a "sell (d+)" rating on shares of Smith Douglas Homes in a report on Friday, July 17th.

Hedge Funds Weigh In On Smith Douglas Homes

Large investors have recently modified their holdings of the stock. 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 shares of Smith Douglas Homes during the 1st quarter worth approximately $324,000. Hsbc Holdings PLC bought a new stake in shares of Smith Douglas Homes during the first quarter worth approximately $168,000. Squarepoint Ops LLC raised 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 worth $494,000 after buying an additional 8,606 shares during the last quarter. Finally, Ruane Cunniff & Goldfarb L.P. lifted its holdings in Smith Douglas Homes by 18.7% in the first quarter. Ruane Cunniff & Goldfarb L.P. now owns 14,490 shares of the company's stock valued at $185,000 after buying an additional 2,281 shares during the period.

Smith Douglas Homes Price Performance

NYSE SDHC opened at $9.92 on Thursday. The stock's 50 day simple moving average is $11.95 and its 200 day simple moving average is $13.05. Smith Douglas Homes has a one year low of $9.75 and a one year high of $23.49. The firm has a market cap of $504.23 million, a PE ratio of 13.78 and a beta of 0.90.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last issued its quarterly earnings data 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%. As a group, equities analysts expect that Smith Douglas Homes will post 0.25 earnings per share for the current year.

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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