Smith Douglas Homes (NYSE:SDHC) Trading Up 5.1% - Time to Buy?

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report)'s share price shot up 5.1% during trading on Wednesday . The stock traded as high as $20.99 and last traded at $20.86. 32,851 shares were traded 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 Analyst Weigh In

Several brokerages have recently commented on SDHC. 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. Wedbush restated a "neutral" rating and issued a $18.00 price objective on shares of Smith Douglas Homes in a research report on Wednesday, May 14th. Royal Bank Of Canada set a $16.00 price objective on Smith Douglas Homes and gave the company a "sector perform" rating in a research report on Tuesday, May 20th. Finally, 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. One investment analyst has rated the stock with a sell rating and four have issued a hold rating to the company. Based on data from MarketBeat.com, Smith Douglas Homes presently has a consensus rating of "Hold" and a consensus target price of $18.90.

Smith Douglas Homes Stock Up 2.4%

The company has a fifty day moving average price of $18.97 and a 200-day moving average price of $20.95. The stock has a market capitalization of $1.10 billion, a P/E ratio of 12.33, a PEG ratio of 10.22 and a beta of 1.06.

Smith Douglas Homes announced that its Board of Directors has initiated a stock buyback program on Wednesday, May 28th that permits the company to repurchase $50.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 5.1% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's management believes its stock is undervalued.

Insider Transactions at Smith Douglas Homes

In other news, Director George Ervin Perdue III bought 1,400 shares of Smith Douglas Homes stock in a transaction dated Friday, June 13th. The shares were purchased at an average cost of $18.25 per share, with a total value of $25,550.00. Following the completion of the acquisition, the director owned 40,384 shares of the company's stock, valued at $737,008. This trade represents a 3.59% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Neill B. Faucett acquired 7,000 shares of Smith Douglas Homes stock in a transaction on Friday, May 23rd. The shares were bought at an average cost of $17.36 per share, for a total transaction of $121,520.00. Following the completion of the purchase, the director directly owned 14,505 shares of the company's stock, valued at $251,806.80. The trade was a 93.27% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last ninety days, insiders bought 40,652 shares of company stock valued at $748,964. 82.71% of the stock is owned by company insiders.

Institutional Investors Weigh In On Smith Douglas Homes

Several large investors have recently added to or reduced their stakes in SDHC. Bank of New York Mellon Corp bought a new stake in Smith Douglas Homes during the fourth quarter worth approximately $328,000. First Eagle Investment Management LLC increased its stake in Smith Douglas Homes by 52.8% during the fourth quarter. First Eagle Investment Management LLC now owns 148,882 shares of the company's stock worth $3,817,000 after acquiring an additional 51,419 shares during the last quarter. Artisan Partners Limited Partnership increased its stake in Smith Douglas Homes by 4.6% during the fourth quarter. Artisan Partners Limited Partnership now owns 813,082 shares of the company's stock worth $20,847,000 after acquiring an additional 35,702 shares during the last quarter. Geode Capital Management LLC increased its stake in Smith Douglas Homes by 0.5% during the fourth quarter. Geode Capital Management LLC now owns 90,038 shares of the company's stock worth $2,310,000 after acquiring an additional 457 shares during the last quarter. Finally, Trexquant Investment LP bought a new stake in Smith Douglas Homes during the fourth quarter worth approximately $218,000.

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.