Smith Douglas Homes (NYSE:SDHC) Shares Gap Up - Still a Buy?

Key Points

• Shares of Smith Douglas Homes gapped up Monday, opening at $12.62 versus the prior close of $11.39 and last trading around $13.04 (about a 5.9% intraday rise) on roughly 22,187 shares.
• Analyst sentiment is mixed — one Buy, five Hold and three Sell — leaving an average rating of "Reduce" and a consensus target price of $15.80.
• The company missed EPS in the latest quarter (‑$0.08 vs. $0.12 expected) but beat revenue estimates ($260.4M vs. $251.1M); market cap is about $687M with a P/E of 11.23.

Shares of Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $11.39, but opened at $12.62. Smith Douglas Homes shares last traded at $13.04, with a volume of 22,187 shares trading hands.

Wall Street Analyst Weigh In

SDHC has been the subject of a number of recent research reports. BTIG Research started coverage on shares of Smith Douglas Homes in a research note on Monday, December 1st. They set a "neutral" rating for the company. Wells Fargo & Company lowered their target price on Smith Douglas Homes from $18.00 to $14.00 and set an "equal weight" rating on the stock in a research report on Thursday. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $17.00 target price on shares of Smith Douglas Homes in a report on Friday, November 21st. UBS Group reaffirmed a "positive" rating on shares of Smith Douglas Homes in a research report on Monday, December 1st. Finally, Wall Street Zen raised Smith Douglas Homes from a "sell" rating to a "hold" rating in a report on Saturday. One research analyst has rated the stock with a Buy rating, five have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, Smith Douglas Homes currently has an average rating of "Reduce" and a consensus target price of $15.80.

Smith Douglas Homes Trading Up 5.9%

The firm has a market capitalization of $687.37 million, a price-to-earnings ratio of 11.23 and a beta of 1.04. The company's 50 day moving average is $17.51 and its 200-day moving average is $17.99.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last posted its quarterly earnings results on Wednesday, March 11th. The company reported ($0.08) EPS for the quarter, missing analysts' consensus estimates of $0.12 by ($0.20). The business had revenue of $260.43 million for the quarter, compared to the consensus estimate of $251.09 million. Smith Douglas Homes had a negative return on equity of 1.03% and a net margin of 1.10%. Research analysts expect that Smith Douglas Homes Corp. will post 1.73 EPS for the current year.

Institutional Investors Weigh In On Smith Douglas Homes

Large investors have recently added to or reduced their stakes in the business. VARCOV Co. bought a new position in Smith Douglas Homes during the fourth quarter worth $200,000. Wellington Management Group LLP lifted its stake in shares of Smith Douglas Homes by 2.2% during the 4th quarter. Wellington Management Group LLP now owns 1,176,973 shares of the company's stock worth $19,738,000 after buying an additional 24,996 shares during the last quarter. Price T Rowe Associates Inc. MD acquired a new stake in shares of Smith Douglas Homes during the 4th quarter worth about $182,000. State Street Corp boosted its holdings in shares of Smith Douglas Homes by 2.7% during the 4th quarter. State Street Corp now owns 42,312 shares of the company's stock worth $710,000 after buying an additional 1,100 shares during the period. Finally, Wells Fargo & Company MN boosted its holdings in shares of Smith Douglas Homes by 5.1% during the 4th quarter. Wells Fargo & Company MN now owns 128,597 shares of the company's stock worth $2,157,000 after buying an additional 6,191 shares during the period.

About Smith Douglas Homes

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. was founded in 2008 and is headquartered in Woodstock, Georgia.

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