Smith Douglas Homes (NYSE:SDHC) Trading Up 3.7% - Should You Buy?

Key Points

• Smith Douglas Homes shares rose 3.7% to $10.70, although trading volume was 99% below the stock’s average daily volume.
• Analyst sentiment remains cautious: one analyst rates the stock Buy, seven Hold and two Sell, resulting in a consensus rating of “Reduce” and a $13.90 target price.
• The company’s latest quarter showed mixed results, with revenue of $273.03 million exceeding estimates but EPS of $0.03 falling short of the $0.11 consensus forecast.

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) shares shot up 3.7% during mid-day trading on Thursday . The stock traded as high as $10.70 and last traded at $10.70. 624 shares traded hands during trading, a decline of 99% from the average daily volume of 91,756 shares. The stock had previously closed at $10.32.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on SDHC. Wall Street Zen upgraded Smith Douglas Homes from a "sell" rating to a "hold" rating in a research report on Saturday, June 13th. Weiss Ratings restated a "sell (d+)" rating on shares of Smith Douglas Homes in a research report on Friday, July 17th. One 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. Based on data from MarketBeat.com, the stock has an average rating of "Reduce" and a consensus target price of $13.90.

Smith Douglas Homes Stock Up 0.8%

The business has a fifty day moving average of $12.92 and a 200 day moving average of $13.24. The firm has a market cap of $528.63 million, a P/E ratio of 14.44 and a beta of 0.83.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.03 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.11 by ($0.08). The company had revenue of $273.03 million for the quarter, compared to the consensus estimate of $258.10 million. Smith Douglas Homes had a negative return on equity of 0.19% and a net margin of 0.64%. On average, sell-side analysts expect that Smith Douglas Homes Corp. will post 0.25 EPS for the current fiscal year.

Institutional Investors Weigh In On Smith Douglas Homes

Large investors have recently modified their holdings of the business. Squarepoint Ops LLC raised its position in 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 buying an additional 8,606 shares during the last quarter. Conifer Management L.L.C. acquired a new stake in shares of Smith Douglas Homes in the second quarter valued at approximately $22,274,259. Ruane Cunniff & Goldfarb L.P. lifted its position in shares of Smith Douglas Homes by 18.7% in the first 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. Dimensional Fund Advisors LP bought a new stake in shares of Smith Douglas Homes in the first quarter worth $324,000. Finally, Hsbc Holdings PLC acquired a new position in Smith Douglas Homes during the first quarter worth $168,000.

Smith Douglas Homes Company Profile

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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