Smith Douglas Homes (NYSE:SDHC) Trading Up 5.9% - What's Next?

Key Points

• Smith Douglas Homes stock rose 5.9% in Friday trading, reaching $16.13, though volume was well below average at 22,577 shares.
• Analyst sentiment remains cautious, with a consensus rating of “Reduce” and an average price target of $13.90; several firms recently issued neutral or equal-weight views and cut price targets.
• The company beat quarterly earnings expectations, reporting $0.06 EPS versus $0.05 expected and revenue of $206.44 million, while analysts forecast full-year EPS of $0.48.

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report)'s stock price was up 5.9% during mid-day trading on Friday . The company traded as high as $16.13 and last traded at $16.13. 22,577 shares traded hands during mid-day trading, a decline of 79% from the average daily volume of 108,103 shares. The stock had previously closed at $15.23.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the company. Zelman & Associates started coverage on Smith Douglas Homes in a research note on Monday, April 6th. They set a "neutral" rating and a $13.50 price target for the company. Citizens Jmp assumed coverage on shares of Smith Douglas Homes in a report on Tuesday, March 24th. They set a "market perform" rating on the stock. Wall Street Zen upgraded shares of Smith Douglas Homes from a "sell" rating to a "hold" rating in a research report on Saturday, June 13th. Wells Fargo & Company reduced their target price on shares of Smith Douglas Homes from $18.00 to $14.00 and set an "equal weight" rating for the company in a research note on Thursday, March 12th. Finally, JPMorgan Chase & Co. lowered their price target on shares of Smith Douglas Homes from $19.00 to $12.00 and set a "neutral" rating on the stock in a research report on Monday, March 16th. One research analyst has rated the stock with a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average target price of $13.90.

Smith Douglas Homes Trading Up 6.0%

The stock has a fifty day simple moving average of $13.29 and a two-hundred day simple moving average of $15.11. The firm has a market cap of $819.59 million, a PE ratio of 16.99 and a beta of 0.87.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The company reported $0.06 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.05 by $0.01. The firm had revenue of $206.44 million for the quarter, compared to the consensus estimate of $200.70 million. Smith Douglas Homes had a net margin of 0.90% and a negative return on equity of 0.78%. As a group, sell-side analysts predict that Smith Douglas Homes Corp. will post 0.48 earnings per share for the current fiscal year.

Institutional Trading of Smith Douglas Homes

Several hedge funds have recently added to or reduced their stakes in SDHC. Ruane Cunniff & Goldfarb L.P. boosted its stake in shares of Smith Douglas Homes by 18.7% during the first quarter. Ruane Cunniff & Goldfarb L.P. now owns 14,490 shares of the company's stock valued at $185,000 after purchasing an additional 2,281 shares during the period. Dimensional Fund Advisors LP purchased a new stake in Smith Douglas Homes during the 1st quarter valued at $324,000. Hsbc Holdings PLC purchased a new stake in Smith Douglas Homes during the 1st quarter valued at $168,000. VARCOV Co. bought a new stake in Smith Douglas Homes in the 4th quarter worth $200,000. Finally, Wellington Management Group LLP grew its holdings in Smith Douglas Homes by 2.2% in the 4th quarter. Wellington Management Group LLP now owns 1,176,973 shares of the company's stock worth $19,738,000 after acquiring an additional 24,996 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. was founded in 2008 and is headquartered in Woodstock, Georgia.

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