Smith Douglas Homes (NYSE:SDHC) Shares Gap Up After 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 changing hands.

Specifically, Director Jeffrey T. Jackson purchased 6,000 shares of Smith Douglas Homes stock in a transaction dated Friday, May 16th. The shares were bought at an average cost of $18.49 per share, for a total transaction of $110,940.00. Following the purchase, the director now owns 25,682 shares in the company, valued at approximately $474,860.18. This trade represents a 30.48% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.

Analyst Upgrades and Downgrades

SDHC has been the subject of several analyst reports. Wedbush restated a "neutral" rating and set a $18.00 price target on shares of Smith Douglas Homes in a report on Wednesday, May 14th. Wells Fargo & Company cut their price objective on shares of 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 shares of Smith Douglas Homes from a "neutral" rating to an "underperform" rating and cut their price objective for the stock from $33.00 to $22.00 in a report on Monday, January 27th. Finally, Royal Bank of Canada cut their price objective on shares of Smith Douglas Homes from $21.00 to $16.00 and set a "sector perform" rating on the stock in a report on Tuesday. One equities research analyst has rated the stock with a sell rating and four have issued a hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $22.20.

Smith Douglas Homes Price Performance

The company has a 50 day moving average of $19.28 and a 200-day moving average of $24.29. The company has a market cap of $926.20 million, a P/E ratio of 10.41, a price-to-earnings-growth ratio of 6.87 and a beta of 1.28.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last posted its quarterly earnings data on Wednesday, March 12th. The company reported $0.46 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.46. Smith Douglas Homes had a net margin of 4.60% and a return on equity of 21.01%. The company had revenue of $287.49 million during the quarter, compared to the consensus estimate of $265.85 million. Research analysts anticipate that Smith Douglas Homes Corp. will post 1.73 EPS for the current year.

Hedge Funds Weigh In On Smith Douglas Homes

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