Insider Buying: Smith Douglas Homes (NYSE:SDHC) Director Buys 20,300 Shares of Stock

Key Points

• Director George Ervin Perdue III bought 20,300 shares at an average $12.27 on March 13, boosting his holdings to 60,684 shares (a 50.27% increase) in a $249,081 transaction disclosed to the SEC.
• Market and analyst backdrop: SDHC traded around $13.02—below its 50- and 200-day averages—after reporting a quarterly EPS miss (-$0.08 vs. $0.12) despite a revenue beat, and analysts' consensus rates the stock as "Reduce" with an average target of $14.80 following several downgrades and price-target cuts.

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) Director George Ervin Perdue III purchased 20,300 shares of the business's stock in a transaction dated Friday, March 13th. The shares were purchased at an average cost of $12.27 per share, with a total value of $249,081.00. Following the completion of the purchase, the director directly owned 60,684 shares in the company, valued at approximately $744,592.68. This represents a 50.27% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website.

Smith Douglas Homes Price Performance

SDHC traded down $0.26 during midday trading on Tuesday, hitting $13.02. 193,190 shares of the company's stock traded hands, compared to its average volume of 98,836. The company has a market cap of $669.93 million, a PE ratio of 10.94 and a beta of 1.04. The stock's fifty day simple moving average is $17.42 and its 200-day simple moving average is $17.95. Smith Douglas Homes Corp. has a one year low of $11.24 and a one year high of $23.50.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last announced its quarterly earnings results on Wednesday, March 11th. The company reported ($0.08) EPS for the quarter, missing the consensus estimate of $0.12 by ($0.20). Smith Douglas Homes had a negative return on equity of 1.03% and a net margin of 1.10%.The business had revenue of $260.43 million for the quarter, compared to analyst estimates of $251.09 million. On average, research analysts expect that Smith Douglas Homes Corp. will post 1.73 EPS for the current year.

Wall Street Analyst Weigh In

Several equities analysts have commented on the company. Wells Fargo & Company cut their price target on Smith Douglas Homes from $18.00 to $14.00 and set an "equal weight" rating for the company in a report on Thursday, March 12th. Zacks Research downgraded shares of Smith Douglas Homes from a "hold" rating to a "strong sell" rating in a report on Wednesday, February 18th. UBS Group reissued a "positive" rating on shares of Smith Douglas Homes in a research note on Monday, December 1st. BTIG Research started coverage on shares of Smith Douglas Homes in a research report on Monday, December 1st. They issued a "neutral" rating for the company. Finally, JPMorgan Chase & Co. cut their price target on shares of Smith Douglas Homes from $19.00 to $12.00 and set a "neutral" rating for the company in a research note on Monday. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Smith Douglas Homes currently has an average rating of "Reduce" and an average target price of $14.80.

Institutional Investors Weigh In On Smith Douglas Homes

Several institutional investors and hedge funds have recently made changes to their positions in SDHC. State Street Corp increased its position in shares of Smith Douglas Homes by 2.7% during the 4th quarter. State Street Corp now owns 42,312 shares of the company's stock worth $710,000 after purchasing an additional 1,100 shares in the last quarter. Geode Capital Management LLC boosted its position in Smith Douglas Homes by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 104,422 shares of the company's stock valued at $1,752,000 after buying an additional 1,406 shares in the last quarter. First Trust Advisors LP grew its stake in Smith Douglas Homes by 5.8% during the second quarter. First Trust Advisors LP now owns 29,025 shares of the company's stock worth $564,000 after buying an additional 1,583 shares during the last quarter. Raymond James Financial Inc. bought a new stake in Smith Douglas Homes during the second quarter worth about $34,000. Finally, Beck Mack & Oliver LLC increased its holdings in shares of Smith Douglas Homes by 0.4% during the fourth quarter. Beck Mack & Oliver LLC now owns 816,447 shares of the company's stock worth $13,692,000 after buying an additional 3,605 shares in the last quarter.

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. was founded in 2008 and is headquartered in Woodstock, Georgia.

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