Smith Douglas Homes (NYSE:SDHC) Trading Down 6.8% - Here's What Happened

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

Analyst Upgrades and Downgrades

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

Smith Douglas Homes Price Performance

The stock has a 50-day moving average price of $18.91 and a 200-day moving average price of $22.45. The company has a market capitalization of $968.63 million, a P/E ratio of 10.89, a P/E/G ratio of 6.87 and a beta of 1.05.

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

Insider Transactions at Smith Douglas Homes

In related news, insider Russell Devendorf acquired 3,000 shares of Smith Douglas Homes stock in a transaction dated Wednesday, May 21st. The stock was bought at an average price of $16.80 per share, with a total value of $50,400.00. Following the transaction, the insider now directly owns 299,952 shares in the company, valued at $5,039,193.60. This represents a 1.01% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Jeffrey T. Jackson purchased 6,000 shares of Smith Douglas Homes stock in a transaction on Friday, May 16th. The stock was bought at an average price of $18.49 per share, with a total value of $110,940.00. Following the completion of the acquisition, the director now directly owns 25,682 shares of the company's stock, valued at approximately $474,860.18. This trade represents a 30.48% increase in their position. The disclosure for this purchase can be found here. In the last 90 days, insiders have bought 40,652 shares of company stock worth $748,964. Company insiders own 82.71% of the company's stock.

Institutional Investors Weigh In On Smith Douglas Homes

Institutional investors have recently made changes to their positions in the stock. PDT Partners LLC boosted its stake in Smith Douglas Homes by 10.7% in the first quarter. PDT Partners LLC now owns 13,988 shares of the company's stock worth $273,000 after buying an additional 1,349 shares in the last quarter. Beck Mack & Oliver LLC boosted its stake in Smith Douglas Homes by 20.2% in 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. Trexquant Investment LP increased its position in shares of Smith Douglas Homes by 93.1% during the first quarter. Trexquant Investment LP now owns 16,420 shares of the company's stock valued at $321,000 after acquiring an additional 7,916 shares in the last quarter. Wellington Management Group LLP lifted 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 valued at $23,644,000 after acquiring an additional 298,227 shares during the period. Finally, Victory Capital Management Inc. boosted its holdings in Smith Douglas Homes by 80.2% in the first quarter. Victory Capital Management Inc. now owns 14,395 shares of the company's stock worth $281,000 after purchasing an additional 6,406 shares during 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.