Smith Douglas Homes (NYSE:SDHC) Hits New 1-Year Low - Here's What Happened

Key Points

• Smith Douglas Homes Corp. (NYSE:SDHC) has reached a new 52-week low of $16.25 during trading, indicating significant downward pressure on its share price.
• Research analysts have issued mixed ratings, with Bank of America raising its target price from $16.00 to $17.00 but maintaining an "underperform" rating, while Wall Street Zen downgraded the stock to a "sell" rating.
• In its latest earnings report, Smith Douglas Homes reported a loss of ($0.13) earnings per share, substantially missing the consensus estimate, although revenue exceeded expectations.

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $16.25 and last traded at $16.44, with a volume of 74881 shares changing hands. The stock had previously closed at $16.75.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on SDHC shares. Bank of America increased their target price on shares of Smith Douglas Homes from $16.00 to $17.00 and gave the company an "underperform" rating in a report on Thursday, September 18th. Wall Street Zen downgraded shares of Smith Douglas Homes from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Smith Douglas Homes in a report on Wednesday. Four research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, Smith Douglas Homes has a consensus rating of "Reduce" and a consensus target price of $17.90.

Smith Douglas Homes Price Performance

The stock's 50-day moving average is $19.03 and its 200-day moving average is $19.19. The stock has a market cap of $844.81 million, a price-to-earnings ratio of 10.33, a price-to-earnings-growth ratio of 11.39 and a beta of 0.96.

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 for the quarter, missing the consensus estimate of $0.25 by ($0.38). The business had revenue of $223.92 million for the quarter, compared to analysts' expectations of $216.01 million. Smith Douglas Homes had a return on equity of 1.74% and a net margin of 1.43%. Analysts predict that Smith Douglas Homes Corp. will post 1.73 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Wasatch Advisors LP increased its stake in shares of Smith Douglas Homes by 4.4% during the 2nd quarter. Wasatch Advisors LP now owns 1,279,357 shares of the company's stock valued at $24,845,000 after acquiring an additional 53,358 shares during the last quarter. Wellington Management Group LLP grew its holdings in shares of Smith Douglas Homes by 32.7% during the 1st quarter. Wellington Management Group LLP now owns 1,211,274 shares of the company's stock worth $23,644,000 after purchasing an additional 298,227 shares during the period. Beck Mack & Oliver LLC increased its position in Smith Douglas Homes by 20.2% during the 1st quarter. Beck Mack & Oliver LLC now owns 840,975 shares of the company's stock worth $16,416,000 after purchasing an additional 141,545 shares in the last quarter. Massachusetts Financial Services Co. MA boosted its stake in Smith Douglas Homes by 11.6% during the 1st quarter. Massachusetts Financial Services Co. MA now owns 486,509 shares of the company's stock valued at $9,497,000 after acquiring an additional 50,713 shares during the last quarter. Finally, First Eagle Investment Management LLC boosted its stake in Smith Douglas Homes by 1.7% during the 2nd quarter. First Eagle Investment Management LLC now owns 240,382 shares of the company's stock valued at $4,668,000 after acquiring an additional 4,000 shares during the last quarter.

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.

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