Smith Douglas Homes (NYSE:SDHC) Shares Gap Down - What's Next?

Key Points

• Smith Douglas Homes shares gapped down ahead of Tuesday’s trading, opening at $14.49 after closing at $15.44 the prior session and last trading near $14.61.
• Analyst sentiment remains cautious overall, with a consensus rating of "Reduce" and an average price target of $13.90. Recent updates included upgrades from sell to hold, but several firms still rate the stock neutral or sell.
• The company recently beat quarterly expectations, reporting $0.06 EPS versus $0.05 expected and revenue of $206.44 million versus $200.70 million estimated. Analysts expect full-year EPS of 0.48.

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $15.44, but opened at $14.49. Smith Douglas Homes shares last traded at $14.61, with a volume of 3,602 shares trading hands.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Wall Street Zen upgraded shares of Smith Douglas Homes from a "sell" rating to a "hold" rating in a research report on Saturday, June 13th. Zacks Research upgraded Smith Douglas Homes from a "strong sell" rating to a "hold" rating in a research note on Friday, May 15th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Smith Douglas Homes in a research note on Friday. Zelman & Associates assumed coverage on Smith Douglas Homes in a report on Monday, April 6th. They set a "neutral" rating and a $13.50 price objective on the stock. Finally, Citizens Jmp assumed coverage on Smith Douglas Homes in a research report on Tuesday, March 24th. They set a "market perform" rating on the stock. One investment analyst has rated the stock with a Buy rating, seven have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus target price of $13.90.

Smith Douglas Homes Stock Performance

The business's fifty day moving average is $13.62 and its 200-day moving average is $14.99. The firm has a market cap of $736.31 million, a P/E ratio of 15.26 and a beta of 0.87.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last posted its earnings results on Wednesday, April 29th. The company reported $0.06 earnings per share for the quarter, topping analysts' consensus estimates of $0.05 by $0.01. Smith Douglas Homes had a net margin of 0.90% and a negative return on equity of 0.78%. The firm had revenue of $206.44 million for the quarter, compared to analyst estimates of $200.70 million. Analysts predict that Smith Douglas Homes Corp. will post 0.48 EPS for the current fiscal year.

Institutional Trading of Smith Douglas Homes

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. First Eagle Investment Management LLC increased its stake in shares of Smith Douglas Homes by 14.2% in the fourth quarter. First Eagle Investment Management LLC now owns 378,774 shares of the company's stock valued at $6,352,000 after buying an additional 47,100 shares during the period. Conifer Management L.L.C. lifted its stake in shares of Smith Douglas Homes by 68.3% in the fourth quarter. Conifer Management L.L.C. now owns 1,433,350 shares of the company's stock worth $24,037,000 after acquiring an additional 581,794 shares during the period. Teachers Retirement System of The State of Kentucky lifted its stake in shares of Smith Douglas Homes by 13.9% in the fourth quarter. Teachers Retirement System of The State of Kentucky now owns 37,859 shares of the company's stock worth $635,000 after acquiring an additional 4,608 shares during the period. Quent Capital LLC bought a new stake in Smith Douglas Homes in the fourth quarter valued at approximately $386,000. Finally, VARCOV Co. bought a new stake in Smith Douglas Homes in the fourth quarter valued at approximately $200,000.

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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