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

Shares of Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) have been assigned an average rating of "Reduce" from the five brokerages that are presently covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation and four have issued a hold recommendation on the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $18.90.

A number of analysts have weighed in on the company. Royal Bank Of Canada set a $16.00 price target on Smith Douglas Homes and gave the company a "sector perform" rating in a research note on Tuesday, May 20th. JPMorgan Chase & Co. cut their price target on Smith Douglas Homes from $24.00 to $18.50 and set a "neutral" rating on the stock in a research note on Wednesday, May 21st. Wall Street Zen cut Smith Douglas Homes from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Finally, Wedbush restated a "neutral" rating and issued a $18.00 price target on shares of Smith Douglas Homes in a research note on Wednesday, May 14th.

Insiders Place Their Bets

In other Smith Douglas Homes news, Director George Ervin Perdue III purchased 1,400 shares of the business's stock in a transaction on Friday, June 13th. The shares were bought at an average cost of $18.25 per share, for a total transaction of $25,550.00. Following the completion of the purchase, the director directly owned 40,384 shares in the company, valued at approximately $737,008. This represents a 3.59% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders acquired 5,400 shares of company stock valued at $104,340 in the last 90 days. 82.71% of the stock is owned by company insiders.

Institutional Trading of Smith Douglas Homes

Hedge funds and other institutional investors have recently made changes to their positions in the company. Raymond James Financial Inc. acquired a new stake in shares of Smith Douglas Homes during the second quarter worth about $34,000. Tower Research Capital LLC TRC acquired a new stake in shares of Smith Douglas Homes during the second quarter worth about $90,000. M&T Bank Corp increased its position in shares of Smith Douglas Homes by 8.4% during the first quarter. M&T Bank Corp now owns 11,001 shares of the company's stock worth $215,000 after purchasing an additional 848 shares in the last quarter. PDT Partners LLC increased its position in shares of Smith Douglas Homes by 10.7% during the first quarter. PDT Partners LLC now owns 13,988 shares of the company's stock worth $273,000 after purchasing an additional 1,349 shares in the last quarter. Finally, Victory Capital Management Inc. increased its position in shares of Smith Douglas Homes by 80.2% during the first quarter. Victory Capital Management Inc. now owns 14,395 shares of the company's stock worth $281,000 after purchasing an additional 6,406 shares in the last quarter.

Smith Douglas Homes Trading Up 9.6%

NYSE:SDHC traded up $1.84 during midday trading on Wednesday, reaching $20.94. The company had a trading volume of 82,716 shares, compared to its average volume of 76,041. The firm has a market capitalization of $1.08 billion, a price-to-earnings ratio of 13.17, a PEG ratio of 12.41 and a beta of 1.06. The stock's fifty day simple moving average is $19.91 and its 200-day simple moving average is $19.67. Smith Douglas Homes has a 12-month low of $16.28 and a 12-month high of $39.50.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last released 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). The company had revenue of $223.92 million during the quarter, compared to analysts' expectations of $216.01 million. Smith Douglas Homes had a net margin of 1.43% and a return on equity of 1.74%. As a group, sell-side analysts expect that Smith Douglas Homes will post 1.73 EPS for the current year.

Smith Douglas Homes announced that its board has authorized a share buyback plan on Wednesday, May 28th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 5.1% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board of directors believes its shares are undervalued.

Smith Douglas Homes Company Profile

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.