Smith Douglas Homes Corp. $SDHC Shares Acquired by Wellington Management Group LLP

Key Points

• Wellington Management Group LLP increased its shareholding in Smith Douglas Homes Corp. by 32.7% during Q1, owning over 1.2 million shares valued at approximately $23.6 million.
• Smith Douglas Homes reported a miss in earnings per share for the last quarter, posting ($0.13) compared to the expected $0.25.
• The company has authorized a stock buyback of up to $50 million, indicating management's belief that the stock may be undervalued amidst recent price corrections.

Wellington Management Group LLP lifted its holdings in shares of Smith Douglas Homes Corp. (NYSE:SDHC - Free Report) by 32.7% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 1,211,274 shares of the company's stock after buying an additional 298,227 shares during the period. Wellington Management Group LLP owned about 2.36% of Smith Douglas Homes worth $23,644,000 at the end of the most recent reporting period.

A number of other large investors have also modified their holdings of the business. Victory Capital Management Inc. raised its stake in shares of Smith Douglas Homes by 80.2% during the 1st quarter. Victory Capital Management Inc. now owns 14,395 shares of the company's stock worth $281,000 after buying an additional 6,406 shares in the last quarter. Massachusetts Financial Services Co. MA increased its stake in Smith Douglas Homes by 11.6% in the 1st quarter. Massachusetts Financial Services Co. MA now owns 486,509 shares of the company's stock valued at $9,497,000 after purchasing an additional 50,713 shares in the last quarter. New York State Common Retirement Fund increased its stake in 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 valued at $3,614,000 after purchasing an additional 1,744 shares in the last quarter. M&T Bank Corp increased its stake in Smith Douglas Homes by 8.4% in the 1st quarter. M&T Bank Corp now owns 11,001 shares of the company's stock valued at $215,000 after purchasing an additional 848 shares in the last quarter. Finally, Two Sigma Investments LP increased its stake in 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 in the last quarter.

Insider Activity

In other Smith Douglas Homes news, Director George Ervin Perdue III acquired 1,400 shares of the firm's stock in a transaction dated Friday, June 13th. The shares were acquired at an average price of $18.25 per share, for a total transaction of $25,550.00. Following the completion of the acquisition, the director directly owned 40,384 shares of the company's stock, valued at $737,008. This trade represents a 3.59% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders acquired a total of 24,652 shares of company stock worth $466,104 in the last 90 days.

Smith Douglas Homes Price Performance

Smith Douglas Homes stock traded down $0.63 during mid-day trading on Friday, hitting $19.56. 96,359 shares of the company were exchanged, compared to its average volume of 64,869. The business's 50 day simple moving average is $19.85 and its two-hundred day simple moving average is $19.74. The company has a market capitalization of $1.01 billion, a P/E ratio of 12.30, a PEG ratio of 12.88 and a beta of 1.05. Smith Douglas Homes Corp. has a 12-month low of $16.28 and a 12-month high of $39.50.

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

Smith Douglas Homes announced that its board has initiated a stock repurchase 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 stock through open market purchases. Stock buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on SDHC shares. Royal Bank Of Canada set a $16.00 price objective on Smith Douglas Homes and gave the company a "sector perform" rating in a research note on Tuesday, May 20th. Wedbush reaffirmed a "neutral" rating and issued a $18.00 price objective on shares of Smith Douglas Homes in a research note on Wednesday, May 14th. JPMorgan Chase & Co. dropped their price objective on 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. Finally, Wall Street Zen downgraded Smith Douglas Homes from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Four analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Smith Douglas Homes presently has a consensus rating of "Reduce" and a consensus target price of $18.90.

Smith Douglas Homes 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.