Smith Douglas Homes (NYSE:SDHC) Shares Up 9.1% - Time to Buy?

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report)'s share price traded up 9.1% during mid-day trading 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.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. JPMorgan Chase & Co. cut their price target on Smith Douglas Homes from $24.00 to $18.50 and set a "neutral" rating for the company in a report on Wednesday, May 21st. Wedbush reaffirmed a "neutral" rating and issued a $18.00 price target on shares of Smith Douglas Homes in a report on Wednesday, May 14th. 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. Finally, Wells Fargo & Company lowered their price objective on Smith Douglas Homes from $21.00 to $20.00 and set an "equal weight" rating for the company in a research report on Monday, April 14th. 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 MarketBeat.com, Smith Douglas Homes has a consensus rating of "Hold" and an average price target of $18.90.

Smith Douglas Homes Price Performance

The stock has a 50-day moving average of $19.20 and a 200 day moving average of $20.53. The stock has a market capitalization of $1.04 billion, a price-to-earnings ratio of 11.65, a price-to-earnings-growth ratio of 11.83 and a beta of 1.06.

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

Insider Buying and Selling

In related news, Director George Ervin Perdue III bought 10,000 shares of the firm's stock in a transaction dated Tuesday, June 3rd. The stock was bought at an average cost of $19.09 per share, for a total transaction of $190,900.00. Following the transaction, the director owned 24,345 shares of the company's stock, valued at $464,746.05. This represents a 69.71% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Russell Devendorf bought 3,000 shares of the firm's stock in a transaction dated Wednesday, May 21st. The shares were bought at an average price of $16.80 per share, with a total value of $50,400.00. Following the completion of the transaction, the insider directly owned 299,952 shares in the company, valued at approximately $5,039,193.60. This trade represents a 1.01% increase in their position. The disclosure for this purchase can be found here. Insiders have purchased a total of 40,652 shares of company stock valued at $748,964 over the last 90 days. 82.71% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Smith Douglas Homes

Institutional investors have recently modified their holdings of the stock. Trexquant Investment LP bought a new position in shares of Smith Douglas Homes during the 4th quarter valued at about $218,000. M&T Bank Corp lifted its holdings in shares of Smith Douglas Homes by 8.4% during the 1st quarter. M&T Bank Corp now owns 11,001 shares of the company's stock valued at $215,000 after purchasing an additional 848 shares in the last quarter. Bank of New York Mellon Corp bought a new position in shares of Smith Douglas Homes during the 4th quarter valued at about $328,000. PDT Partners LLC lifted its holdings 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 in the last quarter. Finally, Victory Capital Management Inc. lifted its holdings 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 in 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.