Smith Douglas Homes (NYSE:SDHC) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Smith Douglas Homes from a “sell” to a “hold” rating, adding to a mixed analyst picture that currently skews cautious. MarketBeat says the consensus rating remains “Reduce,” with an average price target of $14.58.
• The stock traded up 0.7% and opened at $12.98, giving the company a market cap of about $668 million. Shares are still well below the 200-day moving average of $16.79 and far under the 52-week high of $23.50.
• Recent earnings topped expectations, with Smith Douglas Homes reporting EPS of $0.06 versus the $0.05 estimate and revenue of $206.44 million above forecasts. The company also disclosed notable insider buying, including Director George Ervin Perdue III purchasing 20,300 shares.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) was upgraded by analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued on Saturday.

A number of other equities research analysts have also recently issued reports on the stock. Zacks Research cut shares of Smith Douglas Homes from a "hold" rating to a "strong sell" rating in a report on Wednesday, February 18th. Citizens Jmp began coverage on Smith Douglas Homes in a report on Tuesday, March 24th. They set a "market perform" rating for the company. Zelman & Associates started coverage on Smith Douglas Homes in a research report on Monday, April 6th. They set a "neutral" rating and a $13.50 price target on the stock. JPMorgan Chase & Co. dropped their price objective on Smith Douglas Homes from $19.00 to $12.00 and set a "neutral" rating on the stock in a research note on Monday, March 16th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Smith Douglas Homes in a research report on Tuesday, April 21st. One research analyst has rated the stock with a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average price target of $14.58.

Smith Douglas Homes Trading Up 0.7%

Shares of SDHC opened at $12.98 on Friday. The company has a market cap of $668.34 million, a price-to-earnings ratio of 13.66 and a beta of 1.31. Smith Douglas Homes has a 1-year low of $11.13 and a 1-year high of $23.50. The company's fifty day simple moving average is $13.60 and its 200 day simple moving average is $16.79.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The company reported $0.06 EPS for the quarter, beating analysts' consensus estimates of $0.05 by $0.01. Smith Douglas Homes had a net margin of 0.90% and a negative return on equity of 0.78%. The firm had revenue of $206.44 million during the quarter, compared to analysts' expectations of $200.70 million. As a group, research analysts forecast that Smith Douglas Homes will post 0.4 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director George Ervin Perdue III bought 20,300 shares of the company's stock in a transaction dated Friday, March 13th. The stock was bought at an average price of $12.27 per share, with a total value of $249,081.00. Following the completion of the acquisition, the director owned 60,684 shares of the company's stock, valued at $744,592.68. This represents a 50.27% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. In the last quarter, insiders acquired 22,000 shares of company stock worth $268,607. 82.71% of the stock is owned by company insiders.

Hedge Funds Weigh In On Smith Douglas Homes

Hedge funds have recently bought and sold shares of the business. Raymond James Financial Inc. acquired a new stake in Smith Douglas Homes in the 2nd quarter worth about $34,000. Tower Research Capital LLC TRC acquired a new position in shares of Smith Douglas Homes during the 2nd quarter worth approximately $90,000. Hsbc Holdings PLC bought a new position in shares of Smith Douglas Homes during the first quarter worth approximately $168,000. Price T Rowe Associates Inc. MD bought a new position in shares of Smith Douglas Homes during the fourth quarter worth approximately $182,000. Finally, GSA Capital Partners LLP acquired a new stake in shares of Smith Douglas Homes in the third quarter valued at approximately $188,000.

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.

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