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 Monday following insider buying activity. The stock had previously closed at $17.72, but opened at $19.24. Smith Douglas Homes shares last traded at $18.34, with a volume of 17,500 shares changing hands.

Specifically, Director George Ervin Perdue III purchased 1,400 shares of the stock in a transaction that occurred on Friday, June 13th. The stock was acquired at an average cost of $18.25 per share, with a total value of $25,550.00. Following the transaction, the director now owns 40,384 shares of the company's stock, valued at $737,008. This represents a 3.59% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director George Ervin Perdue III purchased 3,500 shares of the company's stock in a transaction that occurred on Wednesday, June 11th. The shares were acquired at an average price of $19.74 per share, for a total transaction of $69,090.00. Following the completion of the acquisition, the director now directly owns 38,484 shares of the company's stock, valued at $759,674.16. This trade represents a 10.00% increase in their position. The disclosure for this purchase can be found here.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the company. Royal Bank Of Canada set a $16.00 price objective on Smith Douglas Homes and gave the company a "sector perform" rating in a research note on Tuesday, May 20th. JPMorgan Chase & Co. cut their price target on Smith Douglas Homes from $24.00 to $18.50 and set a "neutral" rating for the company in a research note on Wednesday, May 21st. Wells Fargo & Company lowered their price objective on Smith Douglas Homes from $21.00 to $20.00 and set an "equal weight" rating on the stock in a research note on Monday, April 14th. Finally, Wedbush reaffirmed a "neutral" rating and set a $18.00 price objective on shares of Smith Douglas Homes in a report on Wednesday, May 14th. One research 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 has an average rating of "Hold" and a consensus price target of $18.90.

Smith Douglas Homes Stock Up 3.1%

The business's 50-day moving average price is $18.90 and its 200 day moving average price is $22.28. The company has a market capitalization of $933.09 million, a P/E ratio of 10.49, a price-to-earnings-growth ratio of 9.06 and a beta of 1.05.

Smith Douglas Homes announced that its board has authorized a stock repurchase plan on Wednesday, May 28th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the company to reacquire up to 5.1% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Institutional Trading of Smith Douglas Homes

A number of large investors have recently modified their holdings of SDHC. Arcadia Investment Management Corp MI purchased a new stake in shares of Smith Douglas Homes during the 4th quarter valued at $27,000. Trexquant Investment LP purchased a new stake in Smith Douglas Homes in the fourth quarter worth approximately $218,000. M&T Bank Corp lifted its holdings in shares of Smith Douglas Homes by 8.4% in the 1st quarter. M&T Bank Corp now owns 11,001 shares of the company's stock worth $215,000 after acquiring an additional 848 shares during the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Smith Douglas Homes in the 4th quarter valued at $328,000. Finally, PDT Partners LLC grew its holdings in shares of Smith Douglas Homes by 10.7% during the 1st 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.

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.