Smith Douglas Homes (NYSE:SDHC) Stock Price Down 6.8% - What's Next?

Shares of Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) were down 6.8% during mid-day trading on Friday . The company traded as low as $18.25 and last traded at $18.11. Approximately 113,982 shares changed hands during mid-day trading, an increase of 12% from the average daily volume of 101,890 shares. The stock had previously closed at $19.43.

Analyst Ratings Changes

A number of equities analysts recently issued reports on SDHC shares. Royal Bank of Canada set a $16.00 price objective on Smith Douglas Homes and gave the stock a "sector perform" rating in a report on Tuesday, May 20th. Wells Fargo & Company decreased their price objective on Smith Douglas Homes from $21.00 to $20.00 and set an "equal weight" rating for the company in a report on Monday, April 14th. JPMorgan Chase & Co. decreased their price objective 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. Finally, Wedbush reiterated a "neutral" rating and set a $18.00 price target on shares of Smith Douglas Homes in a research report on Wednesday, May 14th. One analyst has rated the stock with a sell rating and four have given a hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $18.90.

Smith Douglas Homes Trading Up 4.5%

The company has a market capitalization of $951.91 million, a price-to-earnings ratio of 10.70, a PEG ratio of 6.87 and a beta of 1.05. The firm has a 50-day moving average price of $18.92 and a 200-day moving average price of $22.34.

Smith Douglas Homes declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, May 28th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 5.1% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board believes its shares are undervalued.

Insider Activity

In related news, Director Jeffrey T. Jackson acquired 6,000 shares of Smith Douglas Homes 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 purchase, the director now directly owns 25,682 shares in the company, valued at $474,860.18. The trade was a 30.48% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director George Ervin Perdue III acquired 6,840 shares of Smith Douglas Homes stock in a transaction dated Monday, June 2nd. The shares were bought at an average cost of $18.34 per share, with a total value of $125,445.60. Following the completion of the purchase, the director now owns 14,345 shares in the company, valued at approximately $263,087.30. This represents a 91.14% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last ninety days, insiders have bought 40,652 shares of company stock worth $748,964. 82.71% of the stock is owned by company insiders.

Institutional Investors Weigh In On Smith Douglas Homes

Large investors have recently modified their holdings of the stock. Two Sigma Investments LP boosted its stake in shares of Smith Douglas Homes by 366.3% during the 4th quarter. Two Sigma Investments LP now owns 27,550 shares of the company's stock worth $706,000 after acquiring an additional 21,642 shares in the last quarter. Arcadia Investment Management Corp MI acquired a new stake in shares of Smith Douglas Homes in the fourth quarter worth $27,000. Artisan Partners Limited Partnership boosted its position in shares of Smith Douglas Homes by 4.6% in the fourth quarter. Artisan Partners Limited Partnership now owns 813,082 shares of the company's stock worth $20,847,000 after buying an additional 35,702 shares during the period. Bank of New York Mellon Corp acquired a new stake in shares of Smith Douglas Homes in the fourth quarter worth $328,000. Finally, Jane Street Group LLC boosted its position in shares of Smith Douglas Homes by 69.9% in the fourth quarter. Jane Street Group LLC now owns 23,837 shares of the company's stock worth $611,000 after buying an additional 9,805 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.