Smith Douglas Homes (NYSE:SDHC) Sees Strong Trading Volume - Still a Buy?

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) saw unusually-high trading volume on Monday . Approximately 217,672 shares changed hands during trading, an increase of 115% from the previous session's volume of 101,225 shares.The stock last traded at $19.11 and had previously closed at $19.27.

Analysts Set New Price Targets

SDHC has been the subject of several recent analyst reports. 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. 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. cut 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. Finally, Wells Fargo & Company cut their price objective on Smith Douglas Homes from $21.00 to $20.00 and set an "equal weight" rating for the company in a report on Monday, April 14th. One investment analyst has rated the stock with a sell rating and four have assigned a hold rating to the company's stock. Based on data from MarketBeat, Smith Douglas Homes presently has a consensus rating of "Hold" and an average price target of $18.90.

Smith Douglas Homes Price Performance

The firm has a market cap of $998.20 million, a PE ratio of 11.22, a price-to-earnings-growth ratio of 6.87 and a beta of 1.06. The company has a 50 day simple moving average of $18.92 and a 200-day simple moving average of $22.80.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last issued its earnings results on Wednesday, March 12th. The company reported $0.46 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.46. The business had revenue of $287.49 million during the quarter, compared to analyst estimates of $265.85 million. Smith Douglas Homes had a return on equity of 21.01% and a net margin of 4.60%. On average, sell-side analysts predict that Smith Douglas Homes Corp. will post 1.73 EPS for the current fiscal year.

Smith Douglas Homes announced that its Board of Directors has initiated a stock buyback program on Wednesday, May 28th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the company to buy up to 5.1% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's board of directors believes its shares are undervalued.

Insiders Place Their Bets

In related news, insider Russell Devendorf acquired 3,000 shares of the stock in a transaction on Wednesday, May 21st. The stock was purchased at an average price of $16.80 per share, for a total transaction of $50,400.00. Following the completion of the transaction, the insider now owns 299,952 shares of the company's stock, valued at $5,039,193.60. This trade represents a 1.01% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Jeffrey T. Jackson acquired 6,000 shares of the stock in a transaction on Friday, May 16th. The stock was bought at an average price of $18.49 per share, with a total value of $110,940.00. Following the transaction, the director now directly owns 25,682 shares of the company's stock, valued at approximately $474,860.18. The trade was a 30.48% increase in their position. The disclosure for this purchase can be found here. Insiders bought a total of 35,252 shares of company stock valued at $644,624 over the last quarter. 82.71% of the stock is owned by corporate insiders.

Institutional Trading of Smith Douglas Homes

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Geode Capital Management LLC lifted its position in Smith Douglas Homes by 0.5% in the fourth quarter. Geode Capital Management LLC now owns 90,038 shares of the company's stock valued at $2,310,000 after purchasing an additional 457 shares during the last quarter. M&T Bank Corp lifted its position in Smith Douglas Homes by 8.4% in the first quarter. M&T Bank Corp now owns 11,001 shares of the company's stock valued at $215,000 after purchasing an additional 848 shares during the last quarter. Arcadia Investment Management Corp MI bought a new stake in Smith Douglas Homes in the fourth quarter valued at approximately $27,000. PDT Partners LLC lifted its position in 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 purchasing an additional 1,349 shares during the last quarter. Finally, New York State Common Retirement Fund raised its holdings in shares of Smith Douglas Homes by 1.0% during 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 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.