Smith Douglas Homes (NYSE:SDHC) Shares Gap Up Following Insider Buying Activity

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report)'s stock price gapped up before the market opened on Wednesday after an insider bought additional shares in the company. The stock had previously closed at $17.02, but opened at $17.43. Smith Douglas Homes shares last traded at $18.01, with a volume of 4,899 shares trading hands.

Specifically, Director Jeffrey T. Jackson purchased 6,000 shares of the firm's stock in a transaction that occurred on Friday, May 16th. The shares were bought at an average price of $18.49 per share, for a total transaction of $110,940.00. Following the acquisition, the director now owns 25,682 shares of the company's stock, valued at approximately $474,860.18. This represents a 30.48% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.

Analyst Ratings Changes

A number of brokerages have recently commented on SDHC. JPMorgan Chase & Co. reduced their target price on shares of Smith Douglas Homes from $24.00 to $18.50 and set a "neutral" rating on the stock in a research report on Wednesday, May 21st. Wells Fargo & Company reduced their price objective on Smith Douglas Homes from $21.00 to $20.00 and set an "equal weight" rating on the stock in a report on Monday, April 14th. Bank of America downgraded Smith Douglas Homes from a "neutral" rating to an "underperform" rating and decreased their price objective for the company from $33.00 to $22.00 in a report on Monday, January 27th. Wedbush reaffirmed a "neutral" rating and issued a $18.00 price target on shares of Smith Douglas Homes in a research report on Wednesday, May 14th. Finally, Royal Bank of Canada set a $16.00 price objective on shares of Smith Douglas Homes and gave the stock a "sector perform" rating in a research note on Tuesday, May 20th. One equities research analyst has rated the stock with a sell rating and four have assigned a hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $18.90.

Smith Douglas Homes Price Performance

The business's 50 day moving average price is $19.13 and its 200 day moving average price is $23.86. The firm has a market cap of $888.92 million, a PE ratio of 9.99, a PEG ratio of 6.87 and a beta of 1.28.

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 for the quarter, hitting the consensus estimate of $0.46. Smith Douglas Homes had a return on equity of 21.01% and a net margin of 4.60%. The business had revenue of $287.49 million for the quarter, compared to analysts' expectations of $265.85 million. As a group, analysts predict that Smith Douglas Homes Corp. will post 1.73 earnings per share for the current year.

Institutional Trading of Smith Douglas Homes

Large investors have recently added to or reduced their stakes in the stock. JPMorgan Chase & Co. raised its holdings in shares of Smith Douglas Homes by 1,551.9% during the 3rd quarter. JPMorgan Chase & Co. now owns 21,343 shares of the company's stock worth $806,000 after acquiring an additional 20,051 shares during the period. Yorktown Management & Research Co Inc acquired a new stake in Smith Douglas Homes during the fourth quarter worth about $236,000. Arcadia Investment Management Corp MI purchased a new position in Smith Douglas Homes during the fourth quarter worth about $27,000. Bank of New York Mellon Corp purchased a new stake in shares of Smith Douglas Homes during the 4th quarter valued at approximately $328,000. Finally, First Eagle Investment Management LLC raised its position in shares of Smith Douglas Homes by 52.8% during the 4th quarter. First Eagle Investment Management LLC now owns 148,882 shares of the company's stock valued at $3,817,000 after buying an additional 51,419 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.