Smith Douglas Homes (NYSE:SDHC) Trading 5.1% Higher - Here's Why

Shares of Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) traded up 5.1% during mid-day trading on Wednesday . The company traded as high as $20.99 and last traded at $20.86. 32,851 shares traded hands during mid-day trading, a decline of 66% from the average session volume of 96,841 shares. The stock had previously closed at $19.85.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the company. 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. Wells Fargo & Company lowered 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. JPMorgan Chase & Co. lowered 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. Finally, Wedbush reiterated a "neutral" rating and issued a $18.00 price objective on shares of Smith Douglas Homes in a research report on Wednesday, May 14th. One equities research analyst has rated the stock with a sell rating and four have assigned a hold rating to the company. According to MarketBeat.com, Smith Douglas Homes has an average rating of "Hold" and a consensus price target of $18.90.

Smith Douglas Homes Stock Up 5.1%

The stock has a 50-day simple moving average of $18.97 and a two-hundred day simple moving average of $20.95. The firm has a market cap of $1.07 billion, a PE ratio of 12.06, a P/E/G ratio of 10.22 and a beta of 1.06.

Smith Douglas Homes announced that its board has authorized a share buyback plan on Wednesday, May 28th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 5.1% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Insider Transactions at Smith Douglas Homes

In other news, Director George Ervin Perdue III purchased 1,400 shares of the stock in a transaction on Friday, June 13th. The shares were acquired at an average price of $18.25 per share, for a total transaction of $25,550.00. Following the completion of the transaction, the director directly owned 40,384 shares of the company's stock, valued at approximately $737,008. This trade represents a 3.59% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Also, insider Russell Devendorf acquired 3,000 shares of Smith Douglas Homes stock in a transaction dated Wednesday, May 21st. The shares were bought at an average cost of $16.80 per share, for a total transaction of $50,400.00. Following the completion of the purchase, the insider directly owned 299,952 shares of the company's stock, valued at approximately $5,039,193.60. The trade was a 1.01% increase in their position. The disclosure for this purchase can be found here. Over the last ninety days, insiders have acquired 40,652 shares of company stock worth $748,964. Company insiders own 82.71% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Two Sigma Investments LP grew its stake in shares of Smith Douglas Homes by 366.3% during the fourth quarter. Two Sigma Investments LP now owns 27,550 shares of the company's stock valued at $706,000 after buying an additional 21,642 shares during the last quarter. Artisan Partners Limited Partnership grew its stake in shares of Smith Douglas Homes by 4.6% during the fourth quarter. Artisan Partners Limited Partnership now owns 813,082 shares of the company's stock valued at $20,847,000 after buying an additional 35,702 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of Smith Douglas Homes during the fourth quarter valued at about $328,000. Jane Street Group LLC grew its stake in shares of Smith Douglas Homes by 69.9% during the fourth quarter. Jane Street Group LLC now owns 23,837 shares of the company's stock valued at $611,000 after buying an additional 9,805 shares during the last quarter. Finally, Renaissance Technologies LLC grew its stake in shares of Smith Douglas Homes by 31.9% in the fourth quarter. Renaissance Technologies LLC now owns 99,200 shares of the company's stock worth $2,543,000 after purchasing an additional 24,000 shares during the last quarter.

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.

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