Smith Douglas Homes (NYSE:SDHC) Stock Price Down 11.1% - Time to Sell?

Key Points

• Smith Douglas Homes shares fell 11.1% to $13.83 in midday trading, with volume down 83% from the average session.
• Analyst sentiment remains cautious: the stock has a consensus rating of “Reduce”, with one Buy, seven Hold, and two Sell ratings. The average price target is $13.90, close to the current price.
• The company exceeded quarterly earnings expectations, reporting $0.16 EPS versus the $0.11 consensus estimate, but profitability remained weak with a 0.90% net margin and negative 0.78% return on equity.

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report)'s share price dropped 11.1% during mid-day trading on Thursday . The stock traded as low as $13.64 and last traded at $13.83. 17,401 shares traded hands during trading, a decline of 83% from the average session volume of 100,106 shares. The stock had previously closed at $15.55.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on SDHC. Wall Street Zen raised shares of Smith Douglas Homes from a "sell" rating to a "hold" rating in a report on Saturday, June 13th. Weiss Ratings restated a "sell (d+)" rating on shares of Smith Douglas Homes in a report on Friday, July 17th. Finally, Zacks Research raised shares of Smith Douglas Homes from a "strong sell" rating to a "hold" rating in a research report on Friday, May 15th. One research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average price target of $13.90.

Smith Douglas Homes Price Performance

The firm has a fifty day simple moving average of $14.44 and a two-hundred day simple moving average of $14.69. The firm has a market capitalization of $714.47 million, a P/E ratio of 14.81 and a beta of 0.88.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.05. Smith Douglas Homes had a negative return on equity of 0.78% and a net margin of 0.90%. On average, research analysts anticipate that Smith Douglas Homes Corp. will post 0.48 EPS for the current year.

Institutional Investors Weigh In On Smith Douglas Homes

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SDHC. Raymond James Financial Inc. purchased a new position in shares of Smith Douglas Homes in the second quarter worth about $34,000. Tower Research Capital LLC TRC purchased a new stake in shares of Smith Douglas Homes during the 2nd quarter valued at approximately $90,000. Hsbc Holdings PLC bought a new position in Smith Douglas Homes in the 1st quarter worth approximately $168,000. Price T Rowe Associates Inc. MD bought a new position in Smith Douglas Homes in the 4th quarter worth approximately $182,000. Finally, Ruane Cunniff & Goldfarb L.P. boosted its holdings in Smith Douglas Homes by 18.7% in the 1st quarter. Ruane Cunniff & Goldfarb L.P. now owns 14,490 shares of the company's stock worth $185,000 after buying an additional 2,281 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. was founded in 2008 and is headquartered in Woodstock, Georgia.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source