Smith Douglas Homes (NYSE:SDHC) Shares Up 7.1% on Insider Buying Activity

Shares of Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) shot up 7.1% during trading on Thursday after an insider bought additional shares in the company. The company traded as high as $19.06 and last traded at $19.11. 124,457 shares traded hands during 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 purchased 7,000 shares of the company's stock in a transaction dated Friday, May 23rd. The shares were purchased at an average price of $17.36 per share, with a total value of $121,520.00. Following the transaction, the director now directly owns 14,505 shares of the company's stock, valued at approximately $251,806.80. This represents a 93.27% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. 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 research note on Tuesday, May 20th. Wedbush reiterated a "neutral" rating and issued a $18.00 price target on shares of Smith Douglas Homes in a research report on Wednesday, May 14th. Wells Fargo & Company dropped their price objective on Smith Douglas Homes from $21.00 to $20.00 and set an "equal weight" rating on the stock in a report on Monday, April 14th. Finally, JPMorgan Chase & Co. reduced their target price 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. One analyst has rated the stock with a sell rating and four have given a hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $18.90.

Smith Douglas Homes Price Performance

The stock has a market cap of $974.23 million, a P/E ratio of 10.95, a PEG ratio of 6.87 and a beta of 1.28. The firm's fifty day moving average price is $18.92 and its two-hundred day moving average price is $23.33.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last issued its quarterly earnings data on Wednesday, March 12th. The company reported $0.46 EPS for the quarter, hitting the consensus estimate of $0.46. The company had revenue of $287.49 million during the quarter, compared to analyst estimates of $265.85 million. Smith Douglas Homes had a return on equity of 21.01% and a net margin of 4.60%. On average, research analysts expect that Smith Douglas Homes Corp. will post 1.73 earnings per share for the current fiscal year.

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

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. PDT Partners LLC lifted 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 last quarter. Beck Mack & Oliver LLC boosted its stake in shares of Smith Douglas Homes by 20.2% during the first quarter. Beck Mack & Oliver LLC now owns 840,975 shares of the company's stock valued at $16,416,000 after purchasing an additional 141,545 shares during the period. Trexquant Investment LP boosted its position in Smith Douglas Homes by 93.1% during the 1st quarter. Trexquant Investment LP now owns 16,420 shares of the company's stock valued at $321,000 after buying an additional 7,916 shares during the period. Wellington Management Group LLP increased its position in shares of Smith Douglas Homes by 32.7% in the first quarter. Wellington Management Group LLP now owns 1,211,274 shares of the company's stock valued at $23,644,000 after acquiring an additional 298,227 shares during the period. 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 valued at $281,000 after acquiring an additional 6,406 shares during the last quarter.

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.