Smith Douglas Homes (NYSE:SDHC) Stock Price Down 5.2% - What's Next?

Key Points

• Shares fell 5.2% to $14.15 on Monday on very light volume (7,161 shares), trading below its 50‑day moving average ($14.95) and well under the 200‑day average ($17.15).
• Analysts are mostly negative — the consensus rating is "Reduce" with an average price target of $14.58 after multiple downgrades and cuts (e.g., Wells Fargo lowered its PT to $14.00).
• Fundamentals are mixed: the company missed EPS (‑$0.08 vs. $0.12 estimate) while beating revenue, and a director bought 20,300 shares at $12.27 as insiders now hold roughly 82.7% of the stock.

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report)'s share price fell 5.2% during trading on Monday . The stock traded as low as $14.15 and last traded at $14.15. 7,161 shares changed hands during trading, a decline of 94% from the average session volume of 128,067 shares. The stock had previously closed at $14.92.

Analysts Set New Price Targets

Several research firms have recently commented on SDHC. Zelman & Associates began coverage on shares of Smith Douglas Homes in a research report on Monday, April 6th. They set a "neutral" rating and a $13.50 price target for the company. Wells Fargo & Company lowered their price target on shares of Smith Douglas Homes from $18.00 to $14.00 and set an "equal weight" rating for the company in a research report on Thursday, March 12th. Wall Street Zen lowered shares of Smith Douglas Homes from a "hold" rating to a "sell" rating in a research report on Sunday, March 22nd. Weiss Ratings reiterated a "sell (d+)" rating on shares of Smith Douglas Homes in a research report on Thursday, January 22nd. Finally, Zacks Research lowered shares of Smith Douglas Homes from a "hold" rating to a "strong sell" rating in a research report on Wednesday, February 18th. One analyst has rated the stock with a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average price target of $14.58.

Smith Douglas Homes Trading Down 1.5%

The stock's 50-day moving average is $14.95 and its 200-day moving average is $17.15. The stock has a market cap of $756.34 million, a P/E ratio of 12.34 and a beta of 1.29.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last announced its earnings results on Wednesday, March 11th. The company reported ($0.08) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.12 by ($0.20). The company had revenue of $260.43 million during the quarter, compared to the consensus estimate of $251.09 million. Smith Douglas Homes had a net margin of 1.10% and a negative return on equity of 1.03%. On average, equities analysts forecast that Smith Douglas Homes Corp. will post 1.73 EPS for the current year.

Insiders Place Their Bets

In other Smith Douglas Homes news, Director George Ervin Perdue III acquired 20,300 shares of Smith Douglas Homes stock in a transaction dated Friday, March 13th. The stock was bought at an average price of $12.27 per share, for a total transaction of $249,081.00. Following the transaction, the director owned 60,684 shares in the company, valued at approximately $744,592.68. This trade represents a 50.27% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Over the last three months, insiders have bought 22,000 shares of company stock valued at $268,607. 82.71% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Smith Douglas Homes

Large investors have recently made changes to their positions in the business. Raymond James Financial Inc. bought a new position in shares of Smith Douglas Homes during the 2nd quarter valued at about $34,000. Tower Research Capital LLC TRC purchased a new stake in Smith Douglas Homes during the second quarter valued at about $90,000. Price T Rowe Associates Inc. MD purchased a new stake in Smith Douglas Homes during the fourth quarter valued at about $182,000. GSA Capital Partners LLP purchased a new stake in Smith Douglas Homes during the third quarter valued at about $188,000. Finally, AlphaQuest LLC purchased a new stake in Smith Douglas Homes during the third quarter valued at about $195,000.

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. 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.