Smith Douglas Homes (NYSE:SDHC) Sets New 52-Week Low - Should You Sell?

Key Points

• Smith Douglas Homes shares fell to a new 52-week low of $10.67, last trading at $10.75 versus a prior close of $11.21.
• Analyst sentiment remains cautious: the stock has a consensus rating of “Reduce”, with one Buy, seven Hold, and two Sell ratings. The average price target is $13.90.
• The company’s latest quarterly EPS of $0.03 missed expectations of $0.11, although revenue of $273.03 million exceeded estimates of $258.10 million.

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) shares hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $10.67 and last traded at $10.75, with a volume of 17023 shares changing hands. The stock had previously closed at $11.21.

Analysts Set New Price Targets

Several research firms have recently issued reports on SDHC. Wall Street Zen upgraded 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 research report on Friday, July 17th. Finally, Zacks Research raised Smith Douglas Homes from a "strong sell" rating to a "hold" rating in a research note on Friday, May 15th. One investment 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's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average price target of $13.90.

Smith Douglas Homes Price Performance

The stock has a market capitalization of $546.42 million, a price-to-earnings ratio of 14.93 and a beta of 0.83. The business's 50-day simple moving average is $14.16 and its two-hundred day simple moving average is $13.71.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last released its quarterly earnings data 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 negative return on equity of 0.19% and a net margin of 0.64%.The business had revenue of $273.03 million during the quarter, compared to analyst estimates of $258.10 million. As a group, sell-side analysts expect that Smith Douglas Homes Corp. will post 0.25 EPS for the current year.

Institutional Trading of Smith Douglas Homes

Several large investors have recently added to or reduced their stakes in SDHC. Raymond James Financial Inc. acquired a new position in shares of Smith Douglas Homes during the second quarter worth about $34,000. Tower Research Capital LLC TRC acquired a new stake in shares of Smith Douglas Homes in the second quarter valued at about $90,000. Hsbc Holdings PLC acquired a new stake in shares of Smith Douglas Homes in the first quarter valued at about $168,000. Price T Rowe Associates Inc. MD acquired a new stake in shares of Smith Douglas Homes in the fourth quarter valued at about $182,000. Finally, Ruane Cunniff & Goldfarb L.P. raised its holdings 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 valued at $185,000 after buying an additional 2,281 shares during the period.

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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