Smith Douglas Homes (NYSE:SDHC) Shares Up 6.3% - Here's What Happened

Smith Douglas Homes Corp. (NYSE:SDHC - Get Free Report)'s stock price shot up 6.3% during trading on Friday . The company traded as high as $19.31 and last traded at $19.45. 58,959 shares changed hands during trading, a decline of 41% from the average session volume of 99,862 shares. The stock had previously closed at $18.30.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on SDHC shares. Royal Bank Of Canada set a $16.00 price objective on shares of Smith Douglas Homes and gave the stock a "sector perform" rating in a research note on Tuesday, May 20th. JPMorgan Chase & Co. lowered their price target on Smith Douglas Homes from $24.00 to $18.50 and set a "neutral" rating on the stock in a report on Wednesday, May 21st. Wells Fargo & Company reduced 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 note on Monday, April 14th. Finally, 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. One equities research analyst has rated the stock with a sell rating and four have given a hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $18.90.

Smith Douglas Homes Trading Down 0.5%

The stock has a market capitalization of $997.74 million, a P/E ratio of 11.21, a P/E/G ratio of 10.04 and a beta of 1.06. The business's fifty day simple moving average is $18.89 and its two-hundred day simple moving average is $21.41.

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

Insider Buying and Selling at Smith Douglas Homes

In other news, Director Jeffrey T. Jackson bought 6,000 shares of the company's stock in a transaction that occurred on Friday, May 16th. The stock was acquired at an average price of $18.49 per share, for a total transaction of $110,940.00. Following the transaction, the director directly owned 25,682 shares of the company's stock, valued at $474,860.18. This trade represents a 30.48% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Russell Devendorf acquired 3,000 shares of the firm's stock in a transaction on Wednesday, May 21st. The shares were purchased at an average cost of $16.80 per share, for a total transaction of $50,400.00. Following the completion of the purchase, the insider directly owned 299,952 shares of the company's stock, valued at approximately $5,039,193.60. The trade was a 1.01% increase in their position. The disclosure for this purchase can be found here. In the last three months, insiders acquired 40,652 shares of company stock worth $748,964.

Institutional Trading of Smith Douglas Homes

Hedge funds have recently modified their holdings of the stock. Bank of New York Mellon Corp acquired a new stake in shares of Smith Douglas Homes during the 4th quarter worth approximately $328,000. First Eagle Investment Management LLC raised its position in shares of 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 purchasing an additional 51,419 shares during the period. Artisan Partners Limited Partnership raised its holdings in Smith Douglas Homes by 4.6% during the 4th quarter. Artisan Partners Limited Partnership now owns 813,082 shares of the company's stock worth $20,847,000 after buying an additional 35,702 shares during the period. Geode Capital Management LLC raised its holdings in shares of 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 period. Finally, Trexquant Investment LP acquired a new position in Smith Douglas Homes in the 4th quarter worth $218,000.

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.