Smith Douglas Homes (NYSE:SDHC) Trading Down 8.5% - Here's Why

Key Points

• Shares fell 8.5% on Thursday to $12.25 (from $13.39) on volume 59% above average, signaling near-term selling pressure.
• Analyst sentiment is weak with a MarketBeat average rating of "Reduce" and a $14.80 consensus price target; notable moves include Zacks downgrading to "strong sell" and JPMorgan cutting its target to $12.00.
• The company posted an EPS miss (‑$0.08 vs. $0.12 expected) despite revenue beating estimates, while insiders—including a director who bought 20,300 shares—have increased holdings, and insiders now own 82.71% of the stock.

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report) traded down 8.5% on Thursday . The company traded as low as $12.09 and last traded at $12.25. 162,314 shares traded hands during trading, an increase of 59% from the average session volume of 102,135 shares. The stock had previously closed at $13.39.

Analyst Ratings Changes

Several equities analysts have recently issued reports on SDHC shares. Zacks Research downgraded Smith Douglas Homes from a "hold" rating to a "strong sell" rating in a research note on Wednesday, February 18th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Smith Douglas Homes in a research report on Thursday, January 22nd. Wall Street Zen upgraded Smith Douglas Homes from a "sell" rating to a "hold" rating in a research report on Saturday, March 14th. UBS Group reaffirmed a "positive" rating on shares of Smith Douglas Homes in a research note on Monday, December 1st. Finally, JPMorgan Chase & Co. cut their target price on shares of Smith Douglas Homes from $19.00 to $12.00 and set a "neutral" rating for the company in a report on Monday. One research analyst has rated the stock with a Buy rating, five have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, Smith Douglas Homes has an average rating of "Reduce" and a consensus price target of $14.80.

Smith Douglas Homes Stock Down 10.4%

The company has a 50-day moving average of $17.25 and a 200 day moving average of $17.87. The stock has a market capitalization of $617.40 million, a PE ratio of 10.08 and a beta of 1.04.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last announced its earnings results on Wednesday, March 11th. The company reported ($0.08) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.12 by ($0.20). The business had revenue of $260.43 million for the quarter, compared to analyst estimates of $251.09 million. Smith Douglas Homes had a negative return on equity of 1.03% and a net margin of 1.10%. As a group, equities analysts predict that Smith Douglas Homes Corp. will post 1.73 EPS for the current fiscal year.

Insiders Place Their Bets

In other Smith Douglas Homes news, Director George Ervin Perdue III acquired 20,300 shares of the company's stock in a transaction that occurred on 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 purchase, the director owned 60,684 shares in the company, valued at approximately $744,592.68. The trade was a 50.27% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders have bought 22,000 shares of company stock worth $268,607 in the last quarter. Insiders own 82.71% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of SDHC. First Eagle Investment Management LLC boosted its stake in Smith Douglas Homes by 38.0% during the third quarter. First Eagle Investment Management LLC now owns 331,674 shares of the company's stock worth $5,857,000 after buying an additional 91,292 shares during the last quarter. Teachers Retirement System of The State of Kentucky raised its holdings in shares of Smith Douglas Homes by 26.8% during the 3rd quarter. Teachers Retirement System of The State of Kentucky now owns 33,251 shares of the company's stock worth $587,000 after acquiring an additional 7,025 shares during the period. GSA Capital Partners LLP acquired a new position in shares of Smith Douglas Homes during the 3rd quarter valued at about $188,000. AlphaQuest LLC purchased a new stake in shares of Smith Douglas Homes in the third quarter valued at about $195,000. Finally, Inspire Advisors LLC acquired a new stake in Smith Douglas Homes during the third quarter worth about $214,000.

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. was founded in 2008 and is headquartered in Woodstock, Georgia.

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