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

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

Wall Street Analysts Forecast Growth

SDHC has been the topic of a number of analyst reports. JPMorgan Chase & Co. reduced their price objective on Smith Douglas Homes from $24.00 to $18.50 and set a "neutral" rating on the stock in a research report on Wednesday, May 21st. Royal Bank of Canada set a $16.00 price objective on Smith Douglas Homes and gave the stock a "sector perform" rating in a research report on Tuesday, May 20th. Wedbush reiterated a "neutral" rating and set a $18.00 price objective on shares of Smith Douglas Homes in a research report on Wednesday, May 14th. Finally, Wells Fargo & Company reduced their price objective on Smith Douglas Homes from $21.00 to $20.00 and set an "equal weight" rating on the stock in a research report on Monday, April 14th. One research analyst has rated the stock with a sell rating and four have assigned a hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $18.90.

Smith Douglas Homes Stock Down 2.5%

The company has a market cap of $962.20 million, a PE ratio of 10.82, a P/E/G ratio of 6.87 and a beta of 1.28. The stock has a 50-day simple moving average of $18.92 and a 200 day simple moving average of $23.38.

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

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

Insider Activity

In other news, Director Neill B. Faucett acquired 7,000 shares of the company's stock in a transaction dated Friday, May 23rd. The stock was acquired at an average cost of $17.36 per share, with a total value of $121,520.00. Following the completion of the purchase, the director now owns 14,505 shares of the company's stock, valued at $251,806.80. This represents a 93.27% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Also, insider Russell Devendorf acquired 3,000 shares of the company's stock in a transaction dated Wednesday, May 21st. The stock was purchased at an average cost of $16.80 per share, with a total value of $50,400.00. Following the completion of the purchase, the insider now directly owns 299,952 shares of the company's stock, valued at approximately $5,039,193.60. This represents a 1.01% increase in their position. 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 Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Wellington Management Group LLP grew its stake in 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 worth $23,644,000 after purchasing an additional 298,227 shares in the last quarter. Wasatch Advisors LP grew its stake in Smith Douglas Homes by 438.9% during the 4th quarter. Wasatch Advisors LP now owns 1,156,019 shares of the company's stock worth $29,640,000 after purchasing an additional 941,511 shares in the last quarter. Beck Mack & Oliver LLC grew its stake in Smith Douglas Homes by 20.2% during the 1st 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 in the last quarter. Artisan Partners Limited Partnership grew its stake in Smith Douglas Homes by 4.6% during the 4th quarter. Artisan Partners Limited Partnership now owns 813,082 shares of the company's stock worth $20,847,000 after purchasing an additional 35,702 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA grew its stake in Smith Douglas Homes by 11.6% during the 1st 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 in 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.