Smith Douglas Homes Corp. $SDHC Shares Purchased 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 grew its holdings in shares of Smith Douglas Homes Corp. (NYSE:SDHC - Free Report) by 32.7% during the first quarter, according to its most recent Form 13F filing with the SEC. The firm owned 1,211,274 shares of the company's stock after purchasing an additional 298,227 shares during the period. Wellington Management Group LLP owned 2.36% of Smith Douglas Homes worth $23,644,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently modified their holdings of the company. Geode Capital Management LLC increased its holdings in shares of Smith Douglas Homes by 0.5% in the 4th quarter. Geode Capital Management LLC now owns 90,038 shares of the company's stock worth $2,310,000 after acquiring an additional 457 shares during the period. Jane Street Group LLC increased its holdings in shares of Smith Douglas Homes by 69.9% in the 4th quarter. Jane Street Group LLC now owns 23,837 shares of the company's stock worth $611,000 after acquiring an additional 9,805 shares during the period. Corton Capital Inc. increased its holdings in shares of Smith Douglas Homes by 61.8% in the 4th quarter. Corton Capital Inc. now owns 25,229 shares of the company's stock worth $647,000 after acquiring an additional 9,640 shares during the period. Jacobs Levy Equity Management Inc. acquired a new stake in shares of Smith Douglas Homes in the 4th quarter worth about $456,000. Finally, Millennium Management LLC increased its holdings in shares of Smith Douglas Homes by 50.0% in 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 during the period.

Insider Buying and Selling at Smith Douglas Homes

In other Smith Douglas Homes news, Director George Ervin Perdue III acquired 10,000 shares of Smith Douglas Homes stock in a transaction dated Tuesday, June 3rd. The stock was bought at an average price of $19.09 per share, for a total transaction of $190,900.00. Following the transaction, the director owned 24,345 shares in the company, valued at approximately $464,746.05. This trade represents a 69.71% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. In the last three months, insiders have bought 24,652 shares of company stock worth $466,104.

Smith Douglas Homes Stock Down 0.4%

Shares of SDHC opened at $20.55 on Tuesday. The firm has a 50-day moving average price of $19.71 and a 200 day moving average price of $19.83. The firm has a market capitalization of $1.06 billion, a PE ratio of 12.92, a P/E/G ratio of 13.55 and a beta of 1.05. Smith Douglas Homes Corp. has a 52-week low of $16.28 and a 52-week high of $39.50.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last posted its quarterly earnings data 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). Smith Douglas Homes had a net margin of 1.43% and a return on equity of 1.74%. The business had revenue of $223.92 million for the quarter, compared to the consensus estimate of $216.01 million. On average, equities analysts expect that Smith Douglas Homes Corp. will post 1.73 EPS for the current year.

Smith Douglas Homes declared that its board has authorized a stock buyback plan on Wednesday, May 28th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the company to buy up to 5.1% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on SDHC. JPMorgan Chase & Co. dropped their price objective on shares of Smith Douglas Homes from $24.00 to $18.50 and set a "neutral" rating on the stock in a report on Wednesday, May 21st. Wall Street Zen cut shares of Smith Douglas Homes from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Wedbush reaffirmed a "neutral" rating and issued a $18.00 price objective on shares of Smith Douglas Homes in a report on Wednesday, May 14th. Finally, Royal Bank Of Canada set a $16.00 price objective on shares of Smith Douglas Homes and gave the stock a "sector perform" rating in a report on Tuesday, May 20th. Four equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus price target 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.

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