Smith Douglas Homes (NYSE:SDHC) Shares Up 4.5% - Time to Buy?

Key Points

• Smith Douglas Homes shares increased by 4.5% to $18.36, with trading volume up by 28% compared to the average, indicating strong market interest.
• Analysts have mixed opinions on the stock, with a consensus rating of "Reduce" and a target price of $17.90, following a downgrade from Wall Street Zen.
• The company reported a loss of ($0.13) EPS in its last quarter, missing estimates, but showed stronger revenue performance compared to expectations.

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report)'s share price shot up 4.5% on Thursday . The stock traded as high as $18.41 and last traded at $18.36. 99,806 shares changed hands during trading, an increase of 28% from the average session volume of 77,747 shares. The stock had previously closed at $17.56.

Analyst Upgrades and Downgrades

Several research firms have weighed in on SDHC. Bank of America lifted their price objective on Smith Douglas Homes from $16.00 to $17.00 and gave the company an "underperform" rating in a research report on Thursday, September 18th. Wall Street Zen cut Smith Douglas Homes from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Four equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Reduce" and a consensus target price of $17.90.

Smith Douglas Homes Price Performance

The company has a 50-day moving average price of $19.55 and a 200 day moving average price of $19.35. The firm has a market capitalization of $939.22 million, a PE ratio of 11.52, a P/E/G ratio of 11.38 and a beta of 1.06.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The company reported ($0.13) EPS for the quarter, missing the consensus estimate of $0.25 by ($0.38). Smith Douglas Homes had a net margin of 1.43% and a return on equity of 1.74%. The business had revenue of $223.92 million during the quarter, compared to analysts' expectations of $216.01 million. As a group, research analysts anticipate that Smith Douglas Homes Corp. will post 1.73 earnings per share for the current year.

Smith Douglas Homes declared that its Board of Directors has approved a stock buyback plan on Wednesday, May 28th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 5.1% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in SDHC. Wellington Management Group LLP boosted its holdings in shares of Smith Douglas Homes by 32.7% during the 1st quarter. Wellington Management Group LLP now owns 1,211,274 shares of the company's stock valued at $23,644,000 after purchasing an additional 298,227 shares during the last quarter. Beck Mack & Oliver LLC lifted its stake in Smith Douglas Homes by 20.2% in the first 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. Wasatch Advisors LP lifted its stake in Smith Douglas Homes by 4.4% in the second quarter. Wasatch Advisors LP now owns 1,279,357 shares of the company's stock worth $24,845,000 after purchasing an additional 53,358 shares during the last quarter. Massachusetts Financial Services Co. MA lifted its stake in Smith Douglas Homes by 11.6% in the first quarter. Massachusetts Financial Services Co. MA now owns 486,509 shares of the company's stock worth $9,497,000 after purchasing an additional 50,713 shares during the last quarter. Finally, Covey Capital Advisors LLC bought a new stake in Smith Douglas Homes in the second quarter worth about $705,000.

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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