Wellington Management Group LLP Trims Stake in Smith Douglas Homes Corp. $SDHC

Key Points

• Wellington Management reduced its Smith Douglas Homes stake by 17.9% in the second quarter, selling 136,171 shares and retaining 622,625 shares valued at approximately $9.7 million, or 1.22% of the company.
• Analyst sentiment remains cautious: SDHC has a consensus rating of “Reduce”, based on one Buy, seven Hold, and two Sell ratings, with an average price target of $13.90.
• Shares opened at $10.71, near their 52-week low of $10.62 and down 4.5%; the company’s latest quarterly earnings of $0.03 per share missed estimates of $0.11 despite revenue exceeding expectations.

Wellington Management Group LLP cut its position in shares of Smith Douglas Homes Corp. (NYSE:SDHC - Free Report) by 17.9% in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 622,625 shares of the company's stock after selling 136,171 shares during the period. Wellington Management Group LLP owned about 1.22% of Smith Douglas Homes worth $9,676,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also made changes to their positions in the company. Conifer Management L.L.C. purchased a new position in shares of Smith Douglas Homes during the second quarter valued at $22,274,259. First Eagle Investment Management LLC grew its holdings in Smith Douglas Homes by 14.2% during the 4th quarter. First Eagle Investment Management LLC now owns 378,774 shares of the company's stock worth $6,352,000 after acquiring an additional 47,100 shares in the last quarter. First Trust Advisors LP grew its holdings in Smith Douglas Homes by 5.8% during the 2nd quarter. First Trust Advisors LP now owns 29,025 shares of the company's stock worth $564,000 after acquiring an additional 1,583 shares in the last quarter. Daiwa Securities Group Inc. increased its position in Smith Douglas Homes by 19.6% during the 4th quarter. Daiwa Securities Group Inc. now owns 26,664 shares of the company's stock valued at $447,000 after purchasing an additional 4,377 shares during the period. Finally, Victory Capital Management Inc. bought a new stake in shares of Smith Douglas Homes in the 3rd quarter valued at about $346,000.

Wall Street Analyst Weigh In

Several brokerages have issued reports on SDHC. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Smith Douglas Homes in a research report on Friday, July 17th. Zacks Research upgraded Smith Douglas Homes from a "strong sell" rating to a "hold" rating in a research note on Friday, May 15th. Finally, Wall Street Zen upgraded Smith Douglas Homes from a "sell" rating to a "hold" rating in a research note on Saturday, June 13th. One analyst has rated the stock with a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Reduce" and a consensus price target of $13.90.

Smith Douglas Homes Stock Down 4.5%

Shares of NYSE:SDHC opened at $10.71 on Wednesday. The business has a fifty day moving average of $14.06 and a two-hundred day moving average of $13.66. Smith Douglas Homes Corp. has a 52-week low of $10.62 and a 52-week high of $23.49. The stock has a market cap of $544.39 million, a P/E ratio of 14.88 and a beta of 0.83.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.03 earnings per share for the quarter, missing analysts' consensus estimates of $0.11 by ($0.08). The business 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%. On average, equities analysts anticipate that Smith Douglas Homes Corp. will post 0.25 earnings per share for the current year.

Smith Douglas Homes Company 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. was founded in 2008 and is headquartered in Woodstock, Georgia.

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