Wedbush Expects Weaker Earnings for Smith Douglas Homes

Key Points

• Wedbush has reduced its Q2 2026 EPS estimate for Smith Douglas Homes from $0.35 to $0.24, maintaining a "Neutral" rating with a price target of $18.00.
• The company reported a loss of $0.13 EPS for the last quarter, missing analysts' estimates of $0.25 EPS, while achieving a revenue of $223.92 million, exceeding expectations.
• Smith Douglas Homes has recently authorized a stock buyback plan of $50 million, indicating that the board believes the stock is undervalued.

Smith Douglas Homes Corp. (NYSE:SDHC - Free Report) - Analysts at Wedbush lowered their Q2 2026 earnings per share (EPS) estimates for Smith Douglas Homes in a research report issued to clients and investors on Monday, August 11th. Wedbush analyst J. Mccanless now forecasts that the company will post earnings per share of $0.24 for the quarter, down from their previous forecast of $0.35. Wedbush has a "Neutral" rating and a $18.00 price objective on the stock. The consensus estimate for Smith Douglas Homes' current full-year earnings is $1.73 per share. Wedbush also issued estimates for Smith Douglas Homes' Q3 2026 earnings at $0.34 EPS, Q1 2027 earnings at $0.22 EPS, Q2 2027 earnings at $0.26 EPS and FY2027 earnings at $1.36 EPS.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported ($0.13) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.25 by ($0.38). Smith Douglas Homes had a return on equity of 1.74% and a net margin of 1.43%. The business had revenue of $223.92 million for the quarter, compared to analysts' expectations of $216.01 million.

A number of other analysts have also issued reports on SDHC. JPMorgan Chase & Co. dropped their target price on Smith Douglas Homes from $24.00 to $18.50 and set a "neutral" rating on the stock in a research report on Wednesday, May 21st. Royal Bank Of Canada set a $16.00 target price on Smith Douglas Homes and gave the stock a "sector perform" rating in a research report on Tuesday, May 20th. Finally, Wall Street Zen lowered Smith Douglas Homes from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Two investment analysts have rated the stock with a sell rating and four have issued a hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $18.90.

Smith Douglas Homes Price Performance

Shares of NYSE SDHC remained flat at $20.19 during midday trading on Tuesday. The stock had a trading volume of 167,133 shares, compared to its average volume of 64,543. Smith Douglas Homes has a twelve month low of $16.28 and a twelve month high of $39.50. The company has a market capitalization of $1.04 billion, a PE ratio of 12.70, a PEG ratio of 12.51 and a beta of 1.05. The stock's 50-day moving average price is $19.60 and its two-hundred day moving average price is $20.04.

Hedge Funds Weigh In On Smith Douglas Homes

Hedge funds and other institutional investors have recently bought and sold shares of the stock. M&T Bank Corp boosted its stake in Smith Douglas Homes by 8.4% in the first quarter. M&T Bank Corp now owns 11,001 shares of the company's stock valued at $215,000 after acquiring an additional 848 shares during the period. Two Sigma Investments LP boosted its stake in Smith Douglas Homes by 366.3% in the fourth quarter. Two Sigma Investments LP now owns 27,550 shares of the company's stock valued at $706,000 after acquiring an additional 21,642 shares during the period. New York State Common Retirement Fund boosted its stake in Smith Douglas Homes by 1.0% in the first quarter. New York State Common Retirement Fund now owns 185,119 shares of the company's stock valued at $3,614,000 after acquiring an additional 1,744 shares during the period. Massachusetts Financial Services Co. MA boosted its stake in Smith Douglas Homes by 11.6% in the first quarter. Massachusetts Financial Services Co. MA now owns 486,509 shares of the company's stock valued at $9,497,000 after acquiring an additional 50,713 shares during the period. Finally, Jane Street Group LLC boosted its stake in Smith Douglas Homes by 69.9% in the fourth quarter. Jane Street Group LLC now owns 23,837 shares of the company's stock valued at $611,000 after acquiring an additional 9,805 shares during the period.

Insider Buying and Selling

In other news, Director George Ervin Perdue III purchased 10,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 3rd. The stock was acquired at an average cost of $19.09 per share, for a total transaction of $190,900.00. Following the completion of the purchase, the director owned 24,345 shares of the company's stock, valued at approximately $464,746.05. This trade represents a 69.71% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Russell Devendorf purchased 3,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 21st. The stock was purchased at an average price of $16.80 per share, with a total value of $50,400.00. Following the completion of the purchase, the insider directly owned 299,952 shares of the company's stock, valued at approximately $5,039,193.60. This represents a 1.01% increase in their position. The disclosure for this purchase can be found here. Over the last three months, insiders bought 34,652 shares of company stock worth $638,024. Corporate insiders own 82.71% of the company's stock.

Smith Douglas Homes declared that its Board of Directors has approved a share buyback plan on Wednesday, May 28th that authorizes the company to repurchase $50.00 million in shares. This repurchase authorization authorizes the company to purchase up to 5.1% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its stock is undervalued.

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.