Smith Douglas Homes (NYSE:SDHC) Trading Down 4.5% - Time to Sell?

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report)'s stock price was down 4.5% during trading on Friday . The stock traded as low as $18.57 and last traded at $18.32. Approximately 2,801 shares changed hands during mid-day trading, a decline of 97% from the average daily volume of 99,803 shares. The stock had previously closed at $19.18.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the company. JPMorgan Chase & Co. cut their price target on Smith Douglas Homes from $24.00 to $18.50 and set a "neutral" rating on the stock in a report on Wednesday, May 21st. Royal Bank of Canada set a $16.00 price target on Smith Douglas Homes and gave the stock a "sector perform" rating in a research report on Tuesday, May 20th. Wells Fargo & Company lowered their price target 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, Wedbush restated a "neutral" rating and set a $18.00 price objective on shares of Smith Douglas Homes in a research note on Wednesday, May 14th. One research analyst has rated the stock with a sell rating and four have issued a hold rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $18.90.

Smith Douglas Homes Stock Performance

The stock has a market capitalization of $976.50 million, a P/E ratio of 10.98, a price-to-earnings-growth ratio of 6.87 and a beta of 1.28. The business has a 50 day simple moving average of $18.89 and a 200-day simple moving average of $23.25.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last released its earnings results on Wednesday, March 12th. The company reported $0.46 EPS for the quarter, meeting the consensus estimate 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 during the quarter, compared to analyst estimates of $265.85 million. Equities research analysts forecast that Smith Douglas Homes Corp. will post 1.73 EPS for the current fiscal year.

Smith Douglas Homes announced that its board has approved a share repurchase plan on Wednesday, May 28th that permits the company to buyback $50.00 million in shares. This buyback authorization permits the company to purchase up to 5.1% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its shares are undervalued.

Insider Buying and Selling at Smith Douglas Homes

In other news, Director Neill B. Faucett bought 7,000 shares of the business's stock in a transaction on Friday, May 23rd. The shares were bought at an average cost of $17.36 per share, with a total value of $121,520.00. Following the purchase, the director now directly owns 14,505 shares in the company, valued at $251,806.80. This trade represents a 93.27% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Jeffrey T. Jackson bought 6,000 shares of the firm's stock in a transaction dated Friday, May 16th. The stock was acquired at an average cost of $18.49 per share, with a total value of $110,940.00. Following the transaction, the director now owns 25,682 shares of the company's stock, valued at $474,860.18. This trade represents a 30.48% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last ninety days, insiders bought 16,000 shares of company stock valued at $282,860. 82.71% of the stock is currently owned by corporate insiders.

Institutional Trading of Smith Douglas Homes

Several institutional investors have recently made changes to their positions in SDHC. Arcadia Investment Management Corp MI acquired a new position in Smith Douglas Homes in the 4th quarter valued at approximately $27,000. Trexquant Investment LP purchased a new position in shares of Smith Douglas Homes during the 4th quarter valued at $218,000. Yorktown Management & Research Co Inc acquired a new position in shares of Smith Douglas Homes in the fourth quarter worth $236,000. M&T Bank Corp increased its stake in shares of Smith Douglas Homes by 8.4% in the first quarter. M&T Bank Corp now owns 11,001 shares of the company's stock worth $215,000 after acquiring an additional 848 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Smith Douglas Homes during the fourth quarter worth $328,000.

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.