Smith Douglas Homes (NYSE:SDHC) Sees Large Volume Increase - Here's Why

Key Points

• Smith Douglas Homes (NYSE:SDHC) experienced a significant trading volume increase of 231%, with approximately 254,980 shares traded on a recent Wednesday compared to 76,964 shares the prior session.
• The company missed earnings estimates with a reported ($0.13) EPS for the quarter, falling short of the expected $0.25, while its revenue of $223.92 million surpassed analyst expectations of $216.01 million.
• Recent analyst ratings show mixed reviews, with a downgrade to a "sell" from Wall Street Zen, while Bank of America raised its price target to $17.00 but rated it as "underperform."

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) shares saw unusually-high trading volume on Wednesday . Approximately 254,980 shares changed hands during mid-day trading, an increase of 231% from the previous session's volume of 76,964 shares.The stock last traded at $17.43 and had previously closed at $17.32.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the company. Wall Street Zen cut Smith Douglas Homes from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Bank of America raised their price objective on shares of Smith Douglas Homes from $16.00 to $17.00 and gave the stock an "underperform" rating in a report on Thursday, September 18th. Four equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus price target of $17.90.

Smith Douglas Homes Trading Up 1.2%

The stock has a market cap of $902.23 million, a price-to-earnings ratio of 11.16, a PEG ratio of 11.47 and a beta of 1.05. The stock's 50 day moving average is $19.59 and its two-hundred day moving average is $19.36.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported ($0.13) EPS for the quarter, missing analysts' consensus estimates of $0.25 by ($0.38). Smith Douglas Homes had a net margin of 1.43% and a return on equity of 1.74%. The business had revenue of $223.92 million during the quarter, compared to analysts' expectations of $216.01 million. On average, sell-side analysts predict that Smith Douglas Homes Corp. will post 1.73 EPS for the current year.

Smith Douglas Homes declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, May 28th that permits the company to repurchase $50.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 5.1% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board believes its stock is undervalued.

Institutional Investors Weigh In On Smith Douglas Homes

A number of hedge funds have recently added to or reduced their stakes in SDHC. M&T Bank Corp increased its position in Smith Douglas Homes by 8.4% during the 1st quarter. M&T Bank Corp now owns 11,001 shares of the company's stock worth $215,000 after purchasing an additional 848 shares during the period. PDT Partners LLC boosted its stake in shares of Smith Douglas Homes by 10.7% in the first quarter. PDT Partners LLC now owns 13,988 shares of the company's stock valued at $273,000 after buying an additional 1,349 shares in the last quarter. First Trust Advisors LP raised its position in Smith Douglas Homes by 5.8% in the second quarter. First Trust Advisors LP now owns 29,025 shares of the company's stock worth $564,000 after acquiring an additional 1,583 shares in the last quarter. Raymond James Financial Inc. acquired a new stake in Smith Douglas Homes in the second quarter valued at $34,000. Finally, New York State Common Retirement Fund lifted its holdings in Smith Douglas Homes by 1.0% in the first quarter. New York State Common Retirement Fund now owns 185,119 shares of the company's stock valued at $3,614,000 after acquiring an additional 1,744 shares during the period.

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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