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

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) shares gapped up prior to trading on Monday after an insider bought additional shares in the company. 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.

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 acquisition, the director now owns 40,384 shares in the company, valued at approximately $737,008. This trade represents a 3.59% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director George Ervin Perdue III acquired 3,500 shares of the firm's stock in a transaction on Wednesday, June 11th. The stock was purchased at an average cost of $19.74 per share, with a total value of $69,090.00. Following the completion of the transaction, the director now owns 38,484 shares in the company, valued at $759,674.16. The trade was a 10.00% increase in their ownership of the stock. The disclosure for this purchase can be found here.

Wall Street Analysts Forecast Growth

SDHC has been the subject of a number of analyst reports. JPMorgan Chase & Co. reduced their price target 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. Wedbush reissued a "neutral" rating and set a $18.00 price target on shares of Smith Douglas Homes in a research report on Wednesday, May 14th. Royal Bank of Canada set a $16.00 price target on shares of Smith Douglas Homes and gave the company a "sector perform" rating in a report on Tuesday, May 20th. Finally, Wells Fargo & Company decreased their price objective on shares of 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 equities research analyst has rated the stock with a sell rating and four have issued a hold rating to the company. According to MarketBeat, Smith Douglas Homes has an average rating of "Hold" and a consensus target price of $18.90.

Smith Douglas Homes Price Performance

The company has a fifty day moving average price of $18.91 and a 200 day moving average price of $22.45. The company has a market capitalization of $953.97 million, a P/E ratio of 10.72, a price-to-earnings-growth ratio of 6.87 and a beta of 1.05.

Smith Douglas Homes announced that its board has initiated a share repurchase plan on Wednesday, May 28th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 5.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Institutional Investors Weigh In On Smith Douglas Homes

A number of hedge funds have recently added to or reduced their stakes in the stock. PDT Partners LLC increased its holdings in shares of Smith Douglas Homes by 10.7% in the 1st quarter. PDT Partners LLC now owns 13,988 shares of the company's stock worth $273,000 after acquiring an additional 1,349 shares during the period. Beck Mack & Oliver LLC grew its position in Smith Douglas Homes by 20.2% in the 1st quarter. Beck Mack & Oliver LLC now owns 840,975 shares of the company's stock worth $16,416,000 after purchasing an additional 141,545 shares during the last quarter. Trexquant Investment LP increased its stake in shares of Smith Douglas Homes by 93.1% in the first quarter. Trexquant Investment LP now owns 16,420 shares of the company's stock valued at $321,000 after purchasing an additional 7,916 shares during the period. Wellington Management Group LLP raised its holdings in shares of Smith Douglas Homes by 32.7% during the first quarter. Wellington Management Group LLP now owns 1,211,274 shares of the company's stock valued at $23,644,000 after buying an additional 298,227 shares during the last quarter. Finally, Victory Capital Management Inc. boosted its position in shares of Smith Douglas Homes by 80.2% during the first quarter. Victory Capital Management Inc. now owns 14,395 shares of the company's stock worth $281,000 after buying an additional 6,406 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.

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