Smith Douglas Homes (NYSE:SDHC) Trading Up 4% - Here's What Happened

Key Points

• Smith Douglas Homes shares rose 4% to $12.64 in Friday’s midday trading, although volume was extremely light at about 861 shares versus an average of 94,880.
• Analyst sentiment remains cautious: one analyst rates the stock Buy, seven rate it Hold, and two rate it Sell. The consensus rating is “Reduce”, with an average price target of $13.90.
• The company’s latest quarterly results missed earnings expectations, reporting $0.03 in EPS versus the $0.11 consensus, despite revenue of $273.03 million exceeding estimates.

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report)'s stock price traded up 4% during mid-day trading on Friday . The stock traded as high as $12.64 and last traded at $12.64. Approximately 861 shares changed hands during mid-day trading, a decline of 99% from the average session volume of 94,880 shares. The stock had previously closed at $12.15.

Analyst Ratings Changes

SDHC has been the topic of a number of recent analyst reports. Weiss Ratings reissued a "sell (d+)" rating on shares of Smith Douglas Homes in a research report on Friday, July 17th. Wall Street Zen raised Smith Douglas Homes from a "sell" rating to a "hold" rating in a research report on Saturday, June 13th. Finally, Zacks Research upgraded 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 given a Sell rating to the company's stock. According to MarketBeat, Smith Douglas Homes currently has a consensus rating of "Reduce" and an average price target of $13.90.

Smith Douglas Homes Stock Up 2.2%

The stock has a market capitalization of $631.28 million, a P/E ratio of 17.25 and a beta of 0.88. The firm's 50 day simple moving average is $14.52 and its two-hundred day simple moving average is $14.04.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last issued its quarterly 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). The business had revenue of $273.03 million for the quarter, compared to analysts' expectations of $258.10 million. Smith Douglas Homes had a net margin of 0.64% and a negative return on equity of 0.19%. As a group, equities research analysts expect that Smith Douglas Homes Corp. will post 0.25 earnings per share for the current year.

Institutional Investors Weigh In On Smith Douglas Homes

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Raymond James Financial Inc. purchased a new stake in Smith Douglas Homes during the 2nd quarter valued at $34,000. Tower Research Capital LLC TRC purchased a new position in Smith Douglas Homes during the 2nd quarter valued at $90,000. Hsbc Holdings PLC bought a new stake in shares of Smith Douglas Homes during the first quarter worth $168,000. Price T Rowe Associates Inc. MD purchased a new stake in shares of Smith Douglas Homes in the 4th quarter worth $182,000. Finally, Ruane Cunniff & Goldfarb L.P. grew its holdings in 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 during 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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