JPMorgan Chase & Co. Cuts Smith Douglas Homes (NYSE:SDHC) Price Target to $12.00

Key Points

• JPMorgan cut its price target on Smith Douglas Homes from $19.00 to $12.00 and kept a "neutral" rating, with the new target implying about a 9.7% downside from the prior close.
• Analyst sentiment is mixed but skewed negative: MarketBeat shows a consensus of "Reduce" with an average target of $14.80 (1 Buy, 5 Hold, 3 Sell) and recent revisions from Wells Fargo (to $14) and Zacks (to "strong sell").
• Shares traded around $13.29 on the report; the company recently missed EPS expectations (‑$0.08 vs. $0.12 est.) while reporting $260.4M revenue, and it has a market cap near $684M and a trailing PE of about 11.17.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) had its price objective cut by research analysts at JPMorgan Chase & Co. from $19.00 to $12.00 in a report issued on Monday,Benzinga reports. The firm presently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s price objective points to a potential downside of 9.71% from the stock's previous close.

Other equities analysts have also recently issued reports about the company. BTIG Research initiated coverage on Smith Douglas Homes in a report on Monday, December 1st. They issued a "neutral" rating for the company. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Smith Douglas Homes in a research note on Thursday, January 22nd. Wells Fargo & Company lowered their price target on Smith Douglas Homes from $18.00 to $14.00 and set an "equal weight" rating on the stock in a research report on Thursday. UBS Group reissued a "positive" rating on shares of Smith Douglas Homes in a report on Monday, December 1st. Finally, Zacks Research downgraded shares of Smith Douglas Homes from a "hold" rating to a "strong sell" rating in a research note on Wednesday, February 18th. One equities research analyst has rated the stock with a Buy rating, five have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Reduce" and an average target price of $14.80.

Smith Douglas Homes Stock Performance

Shares of NYSE:SDHC traded up $0.67 during midday trading on Monday, reaching $13.29. 181,390 shares of the company's stock were exchanged, compared to its average volume of 95,958. The company's 50 day simple moving average is $17.51 and its two-hundred day simple moving average is $17.99. Smith Douglas Homes has a 12 month low of $11.24 and a 12 month high of $23.50. The firm has a market capitalization of $683.77 million, a PE ratio of 11.17 and a beta of 1.04.

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

Institutional Investors Weigh In On Smith Douglas Homes

Hedge funds and other institutional investors have recently bought and sold shares of the business. First Eagle Investment Management LLC boosted its stake in Smith Douglas Homes by 38.0% in the third quarter. First Eagle Investment Management LLC now owns 331,674 shares of the company's stock worth $5,857,000 after purchasing an additional 91,292 shares in the last quarter. GSA Capital Partners LLP acquired a new stake in shares of Smith Douglas Homes in the third quarter valued at $188,000. AlphaQuest LLC bought a new position in shares of Smith Douglas Homes in the third quarter valued at about $195,000. Inspire Advisors LLC acquired a new position in Smith Douglas Homes during the 3rd quarter worth about $214,000. Finally, VARCOV Co. acquired a new position in Smith Douglas Homes during the 4th quarter worth about $200,000.

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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