Smith Douglas Homes (NYSE:SDHC) Shares Gap Up - Here's Why

Key Points

• Smith Douglas Homes Corp. shares gapped up from $15.91 to open at $17.00, closing at $16.03 with a trading volume of 4,049 shares.
• Recent analyst ratings show a downgrade from Bank of America, with a target price cut from $17.00 to $15.00, alongside a consensus rating of "Reduce" across multiple analysts.
• The company's latest earnings miss consensus estimates, reporting ($0.13) earnings per share, while revenue reached $223.92 million, exceeding expectations.

Shares of Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) gapped up prior to trading on Thursday . The stock had previously closed at $15.91, but opened at $17.00. Smith Douglas Homes shares last traded at $16.03, with a volume of 4,049 shares changing hands.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on SDHC shares. Zacks Research upgraded shares of Smith Douglas Homes from a "strong sell" rating to a "hold" rating in a research note on Tuesday. Bank of America dropped their price target on shares of Smith Douglas Homes from $17.00 to $15.00 and set an "underperform" rating for the company in a research note on Friday, October 10th. Weiss Ratings restated a "sell (d+)" rating on shares of Smith Douglas Homes in a research report on Wednesday, October 8th. Finally, Wall Street Zen downgraded shares of Smith Douglas Homes from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Five equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, Smith Douglas Homes presently has a consensus rating of "Reduce" and a consensus target price of $17.50.

Smith Douglas Homes Stock Performance

The stock has a market cap of $826.54 million, a P/E ratio of 10.10, a price-to-earnings-growth ratio of 10.63 and a beta of 0.96. The company's 50 day moving average price is $18.60 and its 200-day moving average price is $19.02.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported ($0.13) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.38). Smith Douglas Homes had a return on equity of 1.74% and a net margin of 1.43%.The firm had revenue of $223.92 million during the quarter, compared to the consensus estimate of $216.01 million. On average, analysts forecast that Smith Douglas Homes Corp. will post 1.73 earnings per share for the current fiscal year.

Institutional Trading of Smith Douglas Homes

Hedge funds and other institutional investors have recently bought and sold shares of the company. Raymond James Financial Inc. bought a new position in shares of Smith Douglas Homes in the second quarter worth $34,000. Tower Research Capital LLC TRC purchased a new stake in shares of Smith Douglas Homes in the second quarter worth $90,000. M&T Bank Corp raised its position in shares of Smith Douglas Homes by 8.4% in the first quarter. M&T Bank Corp now owns 11,001 shares of the company's stock worth $215,000 after buying an additional 848 shares in the last quarter. PDT Partners LLC raised its stake in Smith Douglas Homes by 10.7% in the first 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 in the last quarter. Finally, Victory Capital Management Inc. raised its stake 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 acquiring an additional 6,406 shares in 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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