Smith Douglas Homes (NYSE:SDHC) Reaches New 12-Month Low - Time to Sell?

Key Points

• Smith Douglas Homes shares hit a new 52-week low, falling to $9.71 and last trading at $9.88, below the prior close of $10.08.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and a $13.62 target price, while Weiss Ratings reiterated a “sell (d+)” rating.
• The company missed quarterly EPS estimates, reporting $0.03 versus the expected $0.11, although revenue of $273.03 million exceeded forecasts; analysts expect full-year EPS of $0.25.

Shares of Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) hit a new 52-week low during trading on Wednesday. The company traded as low as $9.71 and last traded at $9.88, with a volume of 22,193 shares traded. The stock had previously closed at $10.08.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reissued a "sell (d+)" rating on shares of Smith Douglas Homes in a report on Friday, July 17th. One investment analyst has rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Smith Douglas Homes currently has a consensus rating of "Hold" and a consensus target price of $13.62.

Smith Douglas Homes Stock Performance

The company has a market cap of $501.18 million, a P/E ratio of 13.69 and a beta of 0.90. The stock has a 50-day simple moving average of $11.55 and a 200 day simple moving average of $13.00.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.03 earnings per share (EPS) for the quarter, missing the consensus estimate 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 the consensus estimate of $258.10 million. Sell-side analysts anticipate that Smith Douglas Homes Corp. will post 0.25 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

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

Smith Douglas Homes Company Profile

Smith Douglas Homes Corp. is a residential homebuilder that designs, constructs and sells single-family homes in selected markets across the southeastern and southern United States. The company focuses primarily on building attainable homes for first-time and move-up buyers.

Its homes are offered in a range of floor plans and configurations, with options intended to address varying household sizes, lifestyles and budgets. In addition to constructing homes, Smith Douglas Homes typically acquires and develops residential lots, manages the homebuilding process and provides customer service to homebuyers.

Founded in 2008, the company has expanded its operations across several markets, including communities in Georgia, Alabama, Tennessee, North Carolina and Texas.

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