Smith Douglas Homes (NYSE:SDHC) Reaches New 1-Year Low - Here's Why

Key Points

• Smith Douglas Homes shares hit a new 52-week low, falling to $9.98 from a previous close of $10.25 and trading well below their 50- and 200-day moving averages of roughly $13.35.
• Analyst sentiment remains cautious: the stock has a consensus rating of “Reduce”, with one Buy, seven Hold and two Sell ratings, despite an average price target of $13.90.
• The company’s latest quarterly earnings missed expectations, reporting $0.03 in EPS versus the $0.11 consensus estimate, although revenue of $273.03 million exceeded forecasts.

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report)'s stock price hit a new 52-week low during trading on Friday . The company traded as low as $9.98 and last traded at $9.98, with a volume of 36520 shares changing hands. The stock had previously closed at $10.25.

Analyst Upgrades and Downgrades

SDHC has been the topic of several recent analyst reports. Wall Street Zen raised Smith Douglas Homes from a "sell" rating to a "hold" rating in a report on Saturday, June 13th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Smith Douglas Homes in a report on Friday, July 17th. One equities research analyst has rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Smith Douglas Homes currently has a consensus rating of "Reduce" and an average target price of $13.90.

Smith Douglas Homes Price Performance

The company has a market cap of $504.72 million, a PE ratio of 13.79 and a beta of 0.83. The stock has a 50 day simple moving average of $13.35 and a two-hundred day simple moving average of $13.37.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.03 EPS for the quarter, missing analysts' consensus estimates of $0.11 by ($0.08). Smith Douglas Homes had a net margin of 0.64% and a negative return on equity of 0.19%. The business had revenue of $273.03 million during the quarter, compared to analyst estimates of $258.10 million. As a group, equities analysts anticipate that Smith Douglas Homes Corp. will post 0.25 EPS for the current fiscal year.

Hedge Funds Weigh In On Smith Douglas Homes

A number of hedge funds and other institutional investors have recently made changes to their positions in SDHC. Hsbc Holdings PLC acquired a new position in Smith Douglas Homes during the first quarter worth $168,000. Ruane Cunniff & Goldfarb L.P. grew its stake in shares of Smith Douglas Homes by 18.7% during the 1st quarter. Ruane Cunniff & Goldfarb L.P. now owns 14,490 shares of the company's stock worth $185,000 after purchasing an additional 2,281 shares during the period. Dimensional Fund Advisors LP purchased a new position in shares of Smith Douglas Homes in the 1st quarter valued at about $324,000. Squarepoint Ops LLC increased its holdings in shares of Smith Douglas Homes by 37.1% in the 2nd quarter. Squarepoint Ops LLC now owns 31,818 shares of the company's stock valued at $494,000 after purchasing an additional 8,606 shares in the last quarter. Finally, Conifer Management L.L.C. acquired a new stake in shares of Smith Douglas Homes in the 2nd quarter worth approximately $22,274,259.

About Smith Douglas Homes

Smith Douglas Homes NYSE: SDHC is a residential homebuilder that designs, constructs and sells primarily single-family homes. The company focuses on offering attainable, entry-level housing, with floor plans and community features intended to meet the needs of first-time and value-oriented homebuyers.

The company develops homes in planned communities and offers a range of single-family designs, typically with options that allow buyers to customize selected features and finishes. Its activities generally include land acquisition and development, home construction, marketing, sales and customer service.

Founded in 2008 and headquartered in Atlanta, Georgia, Smith Douglas Homes serves housing markets in the southeastern and southern United States, including communities in Georgia, Alabama, Tennessee, North Carolina and Texas.

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