Smith Douglas Homes (NYSE:SDHC) Trading Up 6.3% - Here's Why

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

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. JPMorgan Chase & Co. lowered their price target on shares of Smith Douglas Homes from $24.00 to $18.50 and set a "neutral" rating on the stock in a research report on Wednesday, May 21st. Wells Fargo & Company lowered 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. Wedbush reissued a "neutral" rating and issued a $18.00 price target on shares of Smith Douglas Homes in a report on Wednesday, May 14th. Finally, Royal Bank Of Canada set a $16.00 target price on shares of Smith Douglas Homes and gave the company a "sector perform" rating in a report on Tuesday, May 20th. One research analyst has rated the stock with a sell rating and four have issued a hold rating to the company. Based on data from MarketBeat, Smith Douglas Homes presently has an average rating of "Hold" and an average target price of $18.90.

Smith Douglas Homes Trading Up 6.7%

The stock has a market capitalization of $1.00 billion, a price-to-earnings ratio of 11.29, a price-to-earnings-growth ratio of 9.28 and a beta of 1.05. The business has a 50 day simple moving average of $18.88 and a 200-day simple moving average of $21.66.

Smith Douglas Homes declared that its board has approved a share repurchase program on Wednesday, May 28th that permits the company to repurchase $50.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 5.1% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's board of directors believes its stock is undervalued.

Insider Transactions at Smith Douglas Homes

In other news, insider Russell Devendorf acquired 3,000 shares of Smith Douglas Homes stock in a transaction that occurred 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 now directly owns 299,952 shares of the company's stock, valued at $5,039,193.60. This trade represents a 1.01% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Jeffrey T. Jackson bought 6,000 shares of the business's stock in a transaction on Friday, May 16th. The stock was acquired at an average cost of $18.49 per share, for a total transaction of $110,940.00. Following the acquisition, the director now directly owns 25,682 shares of the company's stock, valued at $474,860.18. The trade was a 30.48% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last quarter, insiders bought 40,652 shares of company stock worth $748,964. 82.71% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Smith Douglas Homes

Several large investors have recently made changes to their positions in the company. Wasatch Advisors LP grew its stake in shares of Smith Douglas Homes by 438.9% in the 4th quarter. Wasatch Advisors LP now owns 1,156,019 shares of the company's stock worth $29,640,000 after purchasing an additional 941,511 shares during the last quarter. Wellington Management Group LLP lifted its stake in Smith Douglas Homes by 32.7% during the first quarter. Wellington Management Group LLP now owns 1,211,274 shares of the company's stock valued at $23,644,000 after buying an additional 298,227 shares in the last quarter. Beck Mack & Oliver LLC boosted its holdings in shares of Smith Douglas Homes by 58.1% in the fourth quarter. Beck Mack & Oliver LLC now owns 699,430 shares of the company's stock worth $17,933,000 after buying an additional 256,950 shares during the period. First Eagle Investment Management LLC increased its holdings in shares of Smith Douglas Homes by 52.8% in the 4th quarter. First Eagle Investment Management LLC now owns 148,882 shares of the company's stock valued at $3,817,000 after purchasing an additional 51,419 shares during the period. Finally, Massachusetts Financial Services Co. MA increased its stake in Smith Douglas Homes by 11.6% in the 1st quarter. Massachusetts Financial Services Co. MA now owns 486,509 shares of the company's stock valued at $9,497,000 after buying an additional 50,713 shares during the period.

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.

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