Smith Douglas Homes Corp. (NYSE:SDHC) Short Interest Update

Key Points

• Short interest jumped 82.2% in March to 846,947 shares as of March 13, giving a days-to-cover of about 4.0 and representing roughly 1.6% of the company's stock sold short.
• Quarterly results missed EPS expectations — Smith Douglas reported ($0.08) EPS vs. a $0.12 consensus (a $0.20 miss) despite revenue beating estimates at $260.43 million.
• Insider buying amid heavy insider ownership: Director George Ervin Perdue III bought 20,300 shares at $12.27 (a 50.3% increase in his stake), and insiders now own about 82.71% of the stock.

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) was the recipient of a significant increase in short interest in March. As of March 13th, there was short interest totaling 846,947 shares, an increase of 82.2% from the February 26th total of 464,824 shares. Based on an average daily trading volume, of 211,398 shares, the days-to-cover ratio is currently 4.0 days. Approximately 1.6% of the company's stock are sold short.

Smith Douglas Homes Stock Down 1.1%

SDHC stock opened at $12.16 on Friday. The business has a 50 day moving average price of $16.29 and a two-hundred day moving average price of $17.57. The company has a market cap of $626.12 million, a price-to-earnings ratio of 10.22 and a beta of 1.04. Smith Douglas Homes has a twelve month low of $11.13 and a twelve month high of $23.50.

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

Insider Activity

In related news, Director George Ervin Perdue III acquired 20,300 shares of the stock in a transaction dated Friday, March 13th. The stock was bought at an average price of $12.27 per share, with a total value of $249,081.00. Following the completion of the transaction, the director directly owned 60,684 shares of the company's stock, valued at approximately $744,592.68. The trade was a 50.27% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders have acquired a total of 22,000 shares of company stock worth $268,607 over the last ninety days. 82.71% of the stock is owned by corporate insiders.

Institutional Trading of Smith Douglas Homes

A number of hedge funds have recently made changes to their positions in the business. Raymond James Financial Inc. bought a new stake in shares of Smith Douglas Homes during the 2nd quarter worth about $34,000. Tower Research Capital LLC TRC bought a new stake in shares of Smith Douglas Homes during the second quarter worth approximately $90,000. Price T Rowe Associates Inc. MD acquired a new position in shares of Smith Douglas Homes in the fourth quarter valued at approximately $182,000. GSA Capital Partners LLP bought a new position in shares of Smith Douglas Homes during the third quarter worth approximately $188,000. Finally, AlphaQuest LLC acquired a new position in Smith Douglas Homes in the 3rd quarter valued at $195,000.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on SDHC shares. BTIG Research started coverage on shares of Smith Douglas Homes in a research report on Monday, December 1st. They issued a "neutral" rating on the stock. Wells Fargo & Company reduced their price objective 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. UBS Group reiterated a "positive" rating on shares of Smith Douglas Homes in a report on Monday, December 1st. Wall Street Zen cut Smith Douglas Homes from a "hold" rating to a "sell" rating in a research note on Sunday, March 22nd. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Smith Douglas Homes in a research note on Thursday, January 22nd. One equities research analyst has rated the stock with a Buy rating, six have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus target price of $14.80.

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. was founded in 2008 and is headquartered in Woodstock, Georgia.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.