Stock Repurchase Plan Initiated by Smith Douglas Homes (NYSE:SDHC) Board

Smith Douglas Homes (NYSE:SDHC - Get Free Report) announced that its Board of Directors has authorized a stock buyback program on Wednesday, May 28th, RTT News reports. The company plans to buyback $50.00 million in shares. This buyback authorization permits the company to repurchase up to 5.1% of its shares through open market purchases. Shares buyback programs are often a sign that the company's management believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on SDHC. Royal Bank of Canada set a $16.00 price objective on Smith Douglas Homes and gave the stock a "sector perform" rating in a report on Tuesday, May 20th. JPMorgan Chase & Co. dropped their price objective on Smith Douglas Homes from $24.00 to $18.50 and set a "neutral" rating for the company in a report on Wednesday, May 21st. Wedbush reissued a "neutral" rating and set a $18.00 price objective on shares of Smith Douglas Homes in a report on Wednesday, May 14th. Finally, Wells Fargo & Company lowered their price target on Smith Douglas Homes from $21.00 to $20.00 and set an "equal weight" rating for the company in a research note on Monday, April 14th. One investment analyst has rated the stock with a sell rating and four have given a hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $18.90.

Smith Douglas Homes Trading Down 2.5%

Shares of SDHC stock traded down $0.47 on Friday, reaching $18.71. The company had a trading volume of 142,687 shares, compared to its average volume of 100,407. The stock has a market cap of $962.20 million, a PE ratio of 10.82, a PEG ratio of 6.87 and a beta of 1.28. The company has a 50-day moving average of $18.92 and a 200-day moving average of $23.38. 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 announced its quarterly earnings results on Wednesday, March 12th. The company reported $0.46 EPS for the quarter, meeting analysts' consensus estimates of $0.46. The company had revenue of $287.49 million during the quarter, compared to analysts' expectations of $265.85 million. Smith Douglas Homes had a return on equity of 21.01% and a net margin of 4.60%. Sell-side analysts anticipate that Smith Douglas Homes will post 1.73 earnings per share for the current year.

Insider Activity at Smith Douglas Homes

In other news, Director Neill B. Faucett purchased 7,000 shares of the company's stock in a transaction on Friday, May 23rd. The shares were purchased at an average price of $17.36 per share, with a total value of $121,520.00. Following the purchase, the director now directly owns 14,505 shares of the company's stock, valued at $251,806.80. This trade represents a 93.27% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Jeffrey T. Jackson purchased 6,000 shares of the company's stock in a transaction on Friday, May 16th. The stock was purchased at an average cost of $18.49 per share, for a total transaction of $110,940.00. Following the purchase, the director now directly owns 25,682 shares in the company, valued at approximately $474,860.18. This trade represents a 30.48% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last three months, insiders acquired 16,000 shares of company stock worth $282,860. 82.71% of the stock is owned by company insiders.

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.