Smith Douglas Homes (NYSE:SDHC) Downgraded by Wall Street Zen to "Sell"

Key Points

• Wall Street Zen downgraded Smith Douglas Homes (NYSE:SDHC) from a "hold" to a "sell", and the company now has a consensus analyst rating of "Reduce" with an average price target of $14.80 after multiple firms adjusted ratings.
• Smith Douglas missed quarterly EPS expectations (reported ($0.08) vs. $0.12 est.) despite revenue beating estimates, and major banks have cut price targets (JPMorgan to $12, Wells Fargo to $14) amid mixed coverage.
• Director George Ervin Perdue III purchased 20,300 shares at about $12.27, boosting his stake by 50.27%; insiders now own 82.71% of the company's stock.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Sunday.

A number of other research analysts have also recently issued reports on the stock. UBS Group reissued a "positive" rating on shares of Smith Douglas Homes in a research report on Monday, December 1st. Zacks Research cut shares of Smith Douglas Homes from a "hold" rating to a "strong sell" rating in a report on Wednesday, February 18th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Smith Douglas Homes in a research note on Thursday, January 22nd. JPMorgan Chase & Co. lowered their target price on shares of Smith Douglas Homes from $19.00 to $12.00 and set a "neutral" rating for the company in a report on Monday, March 16th. Finally, Wells Fargo & Company dropped their price target on Smith Douglas Homes from $18.00 to $14.00 and set an "equal weight" rating on the stock in a research report on Thursday, March 12th. One analyst has rated the stock with a Buy rating, five have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average price target of $14.80.

Smith Douglas Homes Stock Down 2.5%

Shares of SDHC stock opened at $11.29 on Friday. The business's fifty day moving average is $16.97 and its 200 day moving average is $17.76. The stock has a market cap of $580.87 million, a price-to-earnings ratio of 9.49 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) EPS for the quarter, missing the consensus estimate of $0.12 by ($0.20). The firm had revenue of $260.43 million for the quarter, compared to analysts' expectations of $251.09 million. Smith Douglas Homes had a net margin of 1.10% and a negative return on equity of 1.03%. Equities research analysts expect that Smith Douglas Homes will post 1.73 earnings per share for the current fiscal year.

Insider Transactions at Smith Douglas Homes

In other news, Director George Ervin Perdue III bought 20,300 shares of the firm's stock in a transaction on Friday, March 13th. The stock was acquired at an average cost of $12.27 per share, with a total value of $249,081.00. Following the completion of the acquisition, the director owned 60,684 shares of the company's stock, valued at approximately $744,592.68. This represents 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 bought 22,000 shares of company stock valued at $268,607 over the last three months. 82.71% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Smith Douglas Homes

Several institutional investors and hedge funds have recently made changes to their positions in the company. VARCOV Co. bought a new position in Smith Douglas Homes in the 4th quarter valued at approximately $200,000. Wellington Management Group LLP increased its holdings in shares of Smith Douglas Homes by 2.2% in the 4th quarter. Wellington Management Group LLP now owns 1,176,973 shares of the company's stock worth $19,738,000 after purchasing an additional 24,996 shares in the last quarter. Price T Rowe Associates Inc. MD purchased a new position in shares of Smith Douglas Homes in the fourth quarter worth $182,000. State Street Corp raised its stake in shares of Smith Douglas Homes by 2.7% in the fourth quarter. State Street Corp now owns 42,312 shares of the company's stock worth $710,000 after purchasing an additional 1,100 shares during the last quarter. Finally, Wells Fargo & Company MN lifted its holdings in shares of Smith Douglas Homes by 5.1% during the fourth quarter. Wells Fargo & Company MN now owns 128,597 shares of the company's stock valued at $2,157,000 after purchasing an additional 6,191 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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