Smith Douglas Homes (NYSE:SDHC) Trading 7.1% Higher Following Insider Buying Activity

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report)'s stock price shot up 7.1% on Thursday after an insider bought additional shares in the company. The stock traded as high as $19.06 and last traded at $19.11. 124,457 shares traded hands during mid-day trading, an increase of 25% from the average session volume of 99,889 shares. The stock had previously closed at $17.85.

Specifically, Director Neill B. Faucett bought 7,000 shares of the business's stock in a transaction dated Friday, May 23rd. The stock was bought at an average price of $17.36 per share, for a total transaction of $121,520.00. Following the purchase, the director now owns 14,505 shares in the company, valued at $251,806.80. This represents a 93.27% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

Wall Street Analyst Weigh In

SDHC has been the subject of a number of research reports. JPMorgan Chase & Co. cut their target price on shares of 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. Wedbush restated a "neutral" rating and set a $18.00 target price on shares of Smith Douglas Homes in a research note on Wednesday, May 14th. Wells Fargo & Company cut their target price on shares of Smith Douglas Homes from $21.00 to $20.00 and set an "equal weight" rating for the company in a research note on Monday, April 14th. Finally, Royal Bank of Canada set a $16.00 target price on shares of Smith Douglas Homes and gave the stock a "sector perform" rating in a research note on Tuesday, May 20th. One equities research analyst has rated the stock with a sell rating and four have assigned a hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $18.90.

Smith Douglas Homes Price Performance

The firm has a market capitalization of $962.20 million, a P/E ratio of 10.82, a price-to-earnings-growth ratio of 6.87 and a beta of 1.28. The business's 50-day moving average is $18.92 and its 200 day moving average is $23.38.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last released its quarterly earnings results on Wednesday, March 12th. The company reported $0.46 EPS for the quarter, hitting analysts' consensus estimates of $0.46. Smith Douglas Homes had a net margin of 4.60% and a return on equity of 21.01%. The business had revenue of $287.49 million for the quarter, compared to analyst estimates of $265.85 million. Analysts anticipate that Smith Douglas Homes Corp. will post 1.73 EPS for the current fiscal year.

Smith Douglas Homes declared that its board has approved a share repurchase program on Wednesday, May 28th that allows the company to buyback $50.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 5.1% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board believes its shares are undervalued.

Hedge Funds Weigh In On Smith Douglas Homes

Hedge funds have recently bought and sold shares of the business. Arcadia Investment Management Corp MI bought a new position in Smith Douglas Homes during the fourth quarter worth about $27,000. M&T Bank Corp increased its holdings in Smith Douglas Homes by 8.4% in the 1st quarter. M&T Bank Corp now owns 11,001 shares of the company's stock valued at $215,000 after buying an additional 848 shares during the period. Trexquant Investment LP bought a new position in Smith Douglas Homes in the 4th quarter valued at about $218,000. Yorktown Management & Research Co Inc bought a new position in Smith Douglas Homes in the 4th quarter valued at about $236,000. Finally, PDT Partners LLC increased its holdings in Smith Douglas Homes by 10.7% in the 1st quarter. PDT Partners LLC now owns 13,988 shares of the company's stock valued at $273,000 after buying an additional 1,349 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.