Smith Douglas Homes Corp. (NYSE:SDHC) Given Average Rating of "Reduce" by Analysts

Key Points

• Analysts hold a consensus rating of "Reduce" on Smith Douglas Homes from 11 firms (3 sell, 7 hold, 1 buy) with an average 12‑month target of $14.58, while the stock was trading around $13.78 and sits in a 52‑week range of $11.13–$23.50.
• The company reported an EPS miss for the quarter (loss of $0.08 vs. $0.12 expected) despite revenue beating estimates ($260.43M vs. $251.09M), and shows a negative return on equity (−1.03%) with a slim net margin (1.10%).
• Insiders remain heavily invested—director George Ervin Perdue III bought 20,300 shares at $12.27 and insiders collectively own 82.71% of the company—while multiple institutional investors (e.g., Conifer, Wasatch, First Eagle) recently increased their stakes.

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) has been given a consensus rating of "Reduce" by the eleven research firms that are covering the firm, Marketbeat reports. Three investment analysts have rated the stock with a sell recommendation, seven have assigned a hold recommendation and one has given a buy recommendation to the company. The average twelve-month target price among brokers that have covered the stock in the last year is $14.5833.

SDHC has been the subject of a number of research reports. Zelman & Associates began coverage on shares of Smith Douglas Homes in a research report on Monday, April 6th. They issued a "neutral" rating and a $13.50 price target for the company. JPMorgan Chase & Co. cut their target price on Smith Douglas Homes from $19.00 to $12.00 and set a "neutral" rating on the stock in a research report on Monday, March 16th. Weiss Ratings reissued a "sell (d+)" rating on shares of Smith Douglas Homes in a report on Thursday, January 22nd. Wells Fargo & Company decreased their target price on Smith Douglas Homes from $18.00 to $14.00 and set an "equal weight" rating for the company in a research report on Thursday, March 12th. Finally, Wall Street Zen downgraded Smith Douglas Homes from a "hold" rating to a "sell" rating in a research note on Sunday, March 22nd.

Smith Douglas Homes Stock Up 0.4%

Shares of SDHC opened at $13.78 on Thursday. The company has a market capitalization of $709.49 million, a price-to-earnings ratio of 11.58 and a beta of 1.29. Smith Douglas Homes has a 52-week low of $11.13 and a 52-week high of $23.50. The stock has a 50 day moving average price of $14.70 and a 200 day moving average price of $17.07.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last released its quarterly earnings data on Wednesday, March 11th. The company reported ($0.08) earnings per share for the quarter, missing analysts' consensus estimates of $0.12 by ($0.20). The company had revenue of $260.43 million for the quarter, compared to analyst estimates of $251.09 million. Smith Douglas Homes had a negative return on equity of 1.03% and a net margin of 1.10%. On average, equities analysts anticipate that Smith Douglas Homes will post 1.73 EPS for the current fiscal year.

Insider Activity

In other Smith Douglas Homes news, Director George Ervin Perdue III bought 20,300 shares of the stock in a transaction dated Friday, March 13th. The shares were acquired at an average cost of $12.27 per share, for a total transaction of $249,081.00. Following the completion of the transaction, the director owned 60,684 shares in the company, valued at approximately $744,592.68. The trade was a 50.27% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Insiders have purchased 22,000 shares of company stock worth $268,607 in the last 90 days. Company insiders own 82.71% of the company's stock.

Hedge Funds Weigh In On Smith Douglas Homes

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Conifer Management L.L.C. raised its stake in Smith Douglas Homes by 68.3% in the 4th quarter. Conifer Management L.L.C. now owns 1,433,350 shares of the company's stock valued at $24,037,000 after purchasing an additional 581,794 shares during the last quarter. First Eagle Investment Management LLC lifted its holdings in Smith Douglas Homes by 38.0% in the 3rd quarter. First Eagle Investment Management LLC now owns 331,674 shares of the company's stock valued at $5,857,000 after purchasing an additional 91,292 shares in the last quarter. Wasatch Advisors LP boosted its stake in shares of Smith Douglas Homes by 6.2% during the 4th quarter. Wasatch Advisors LP now owns 1,249,857 shares of the company's stock worth $20,960,000 after purchasing an additional 72,525 shares during the last quarter. Marshall Wace LLP purchased a new stake in shares of Smith Douglas Homes during the second quarter worth about $644,000. Finally, Wellington Management Group LLP grew its holdings in shares of Smith Douglas Homes by 2.2% during the fourth quarter. Wellington Management Group LLP now owns 1,176,973 shares of the company's stock worth $19,738,000 after buying an additional 24,996 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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