Smith Douglas Homes (NYSE:SDHC) Stock Price Up 3.6% - Still a Buy?

Key Points

• Smith Douglas Homes shares rose 3.6% to $10.70, but trading volume was exceptionally light at roughly 5,485 shares, 94% below the average daily volume.
• Analyst sentiment remains cautious: one analyst rates the stock Buy, seven rate it Hold, and two rate it Sell. The average rating is “Reduce,” with a $13.90 price target.
• The company missed quarterly EPS expectations, reporting $0.03 versus the $0.11 consensus estimate, although revenue of $273.03 million exceeded forecasts.

Shares of Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) were up 3.6% on Thursday . The stock traded as high as $10.70 and last traded at $10.70. Approximately 5,485 shares changed hands during trading, a decline of 94% from the average daily volume of 93,188 shares. The stock had previously closed at $10.33.

Wall Street Analysts Forecast Growth

SDHC has been the subject of several research reports. Wall Street Zen raised Smith Douglas Homes from a "sell" rating to a "hold" rating in a research report on Saturday, June 13th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Smith Douglas Homes in a report on Friday, July 17th. Finally, Zacks Research raised Smith Douglas Homes from a "strong sell" rating to a "hold" rating in a research report 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 stock. Based on data from MarketBeat, Smith Douglas Homes has an average rating of "Reduce" and an average price target of $13.90.

Smith Douglas Homes Stock Performance

The company's 50-day simple moving average is $13.96 and its 200-day simple moving average is $13.61. The company has a market capitalization of $516.94 million, a PE ratio of 14.13 and a beta of 0.83.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.03 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 company had revenue of $273.03 million for the quarter, compared to analysts' expectations of $258.10 million. Analysts expect that Smith Douglas Homes Corp. will post 0.25 EPS for the current year.

Hedge Funds Weigh In On Smith Douglas Homes

Large investors have recently modified their holdings of the business. Raymond James Financial Inc. acquired a new stake in shares of Smith Douglas Homes in the second quarter valued at about $34,000. Tower Research Capital LLC TRC acquired a new stake in Smith Douglas Homes in the 2nd 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 approximately $168,000. Price T Rowe Associates Inc. MD purchased a new position in Smith Douglas Homes during the fourth quarter worth $182,000. Finally, Ruane Cunniff & Goldfarb L.P. increased its position in 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 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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