Thornburg Investment Management Inc. Trims Stake in Smith Douglas Homes Corp. (NYSE:SDHC)

Key Points

• Thornburg Investment Management Inc. reduced its stake in Smith Douglas Homes Corp. by 5.6%, now holding 244,213 shares valued at approximately $4.77 million after selling 14,616 shares in the first quarter.
• Multiple institutional investors have made adjustments: M&T Bank Corp. increased its stake by 8.4%, while Victory Capital Management Inc. raised its position significantly by 80.2% during the same period.
• Smith Douglas Homes authorized a $50 million stock buyback plan, allowing the repurchase of up to 5.1% of its outstanding shares, indicating potential confidence in the stock’s undervaluation.

Thornburg Investment Management Inc. trimmed its stake in shares of Smith Douglas Homes Corp. (NYSE:SDHC - Free Report) by 5.6% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 244,213 shares of the company's stock after selling 14,616 shares during the period. Thornburg Investment Management Inc. owned about 0.47% of Smith Douglas Homes worth $4,767,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also recently bought and sold shares of SDHC. Wasatch Advisors LP boosted its position in Smith Douglas Homes by 438.9% during the fourth quarter. Wasatch Advisors LP now owns 1,156,019 shares of the company's stock worth $29,640,000 after purchasing an additional 941,511 shares in the last quarter. Beck Mack & Oliver LLC boosted its position in Smith Douglas Homes by 58.1% during the fourth quarter. Beck Mack & Oliver LLC now owns 699,430 shares of the company's stock worth $17,933,000 after purchasing an additional 256,950 shares in the last quarter. Massachusetts Financial Services Co. MA boosted its position in Smith Douglas Homes by 11.6% during the first quarter. Massachusetts Financial Services Co. MA now owns 486,509 shares of the company's stock worth $9,497,000 after purchasing an additional 50,713 shares in the last quarter. New York State Common Retirement Fund boosted its position in Smith Douglas Homes by 1.0% during the first quarter. New York State Common Retirement Fund now owns 185,119 shares of the company's stock worth $3,614,000 after purchasing an additional 1,744 shares in the last quarter. Finally, Renaissance Technologies LLC boosted its position in Smith Douglas Homes by 31.9% during the fourth quarter. Renaissance Technologies LLC now owns 99,200 shares of the company's stock worth $2,543,000 after purchasing an additional 24,000 shares in the last quarter.

Insider Buying and Selling

In related news, Director George Ervin Perdue III acquired 10,000 shares of Smith Douglas Homes stock in a transaction that occurred on Tuesday, June 3rd. The shares were purchased at an average price of $19.09 per share, for a total transaction of $190,900.00. Following the completion of the transaction, the director owned 24,345 shares in the company, valued at $464,746.05. This represents a 69.71% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Russell Devendorf acquired 3,000 shares of Smith Douglas Homes stock in a transaction that occurred on Wednesday, May 21st. The shares were bought at an average price of $16.80 per share, for a total transaction of $50,400.00. Following the transaction, the insider owned 299,952 shares of the company's stock, valued at $5,039,193.60. This represents a 1.01% increase in their position. The disclosure for this purchase can be found here. In the last ninety days, insiders have bought 40,652 shares of company stock worth $748,964. 82.71% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on SDHC shares. Wells Fargo & Company lowered their price target on Smith Douglas Homes from $21.00 to $20.00 and set an "equal weight" rating on the stock in a research report on Monday, April 14th. Royal Bank Of Canada set a $16.00 price target on Smith Douglas Homes and gave the stock a "sector perform" rating in a research report on Tuesday, May 20th. JPMorgan Chase & Co. lowered their price target on Smith Douglas Homes from $24.00 to $18.50 and set a "neutral" rating on the stock in a research note on Wednesday, May 21st. Finally, Wedbush reaffirmed a "neutral" rating and issued a $18.00 price target on shares of Smith Douglas Homes in a research note on Wednesday, May 14th. One analyst has rated the stock with a sell rating and four have issued a hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $18.90.

Smith Douglas Homes Stock Performance

Shares of NYSE:SDHC traded up $0.59 during trading on Friday, reaching $19.43. The stock had a trading volume of 85,315 shares, compared to its average volume of 61,582. The business has a fifty day moving average price of $19.47 and a 200-day moving average price of $20.37. The stock has a market cap of $999.28 million, a PE ratio of 11.23, a PEG ratio of 10.18 and a beta of 1.05. Smith Douglas Homes Corp. has a 1-year low of $16.28 and a 1-year high of $39.50.

Smith Douglas Homes declared that its Board of Directors has approved a share buyback program on Wednesday, May 28th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 5.1% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's board believes its stock is undervalued.

About Smith Douglas Homes

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.