Smith Douglas Homes (NYSE:SDHC) Shares Up 9.1% - Should You Buy?

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) shares traded up 9.1% on Tuesday . The company traded as high as $21.52 and last traded at $21.57. 31,037 shares traded hands during mid-day trading, a decline of 67% from the average session volume of 93,993 shares. The stock had previously closed at $19.76.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on SDHC shares. Wedbush reaffirmed a "neutral" rating and set a $18.00 target price on shares of Smith Douglas Homes in a research note on Wednesday, May 14th. Wells Fargo & Company dropped their target price on 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. JPMorgan Chase & Co. cut their target price on Smith Douglas Homes from $24.00 to $18.50 and set a "neutral" rating on the stock in a research note on Wednesday, May 21st. Finally, Royal Bank Of Canada set a $16.00 price target on Smith Douglas Homes and gave the company a "sector perform" rating in a report on Tuesday, May 20th. One investment 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, the stock has an average rating of "Hold" and a consensus target price of $18.90.

Smith Douglas Homes Trading Down 1.3%

The firm has a market capitalization of $1.06 billion, a PE ratio of 11.87, a P/E/G ratio of 10.74 and a beta of 1.06. The firm has a 50 day simple moving average of $19.22 and a 200 day simple moving average of $20.50.

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

Insiders Place Their Bets

In other Smith Douglas Homes news, Director Neill B. Faucett bought 7,000 shares of the firm's stock in a transaction on Friday, May 23rd. The stock was acquired at an average price of $17.36 per share, with a total value of $121,520.00. Following the transaction, the director owned 14,505 shares in the company, valued at $251,806.80. This represents a 93.27% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Jeffrey T. Jackson purchased 6,000 shares of Smith Douglas Homes stock in a transaction dated 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 purchase, the director directly owned 25,682 shares of the company's stock, valued at approximately $474,860.18. This trade represents a 30.48% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last three months, insiders purchased 40,652 shares of company stock valued at $748,964. 82.71% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Smith Douglas Homes

Hedge funds have recently added to or reduced their stakes in the stock. Trexquant Investment LP bought a new stake in shares of Smith Douglas Homes in the fourth quarter worth $218,000. M&T Bank Corp boosted its position in Smith Douglas Homes by 8.4% in the first quarter. M&T Bank Corp now owns 11,001 shares of the company's stock worth $215,000 after purchasing an additional 848 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in shares of Smith Douglas Homes during the 4th quarter valued at about $328,000. PDT Partners LLC grew its stake in shares of Smith Douglas Homes by 10.7% during the 1st quarter. PDT Partners LLC now owns 13,988 shares of the company's stock valued at $273,000 after purchasing an additional 1,349 shares during the period. Finally, Victory Capital Management Inc. increased its position in shares of Smith Douglas Homes by 80.2% during the 1st quarter. Victory Capital Management Inc. now owns 14,395 shares of the company's stock valued at $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.