Q3 EPS Estimates for Smith Douglas Homes Lowered by Wedbush

Key Points

• Wedbush has revised its Q3 2025 EPS estimate for Smith Douglas Homes down to $0.26, a significant decrease from the previous forecast of $0.48, while maintaining a "Neutral" rating.
• Smith Douglas Homes recently reported a Q2 earnings miss, with an EPS of ($0.13), falling short of the consensus estimate of $0.25 by $0.38.
• The company has announced a $50 million stock buyback plan as a signal that its board believes its shares are undervalued.

Smith Douglas Homes Corp. (NYSE:SDHC - Free Report) - Investment analysts at Wedbush reduced their Q3 2025 EPS estimates for shares of Smith Douglas Homes in a research report issued to clients and investors on Monday, August 11th. Wedbush analyst J. Mccanless now forecasts that the company will earn $0.26 per share for the quarter, down from their prior forecast of $0.48. Wedbush currently has a "Neutral" rating and a $18.00 target price on the stock. The consensus estimate for Smith Douglas Homes' current full-year earnings is $1.73 per share. Wedbush also issued estimates for Smith Douglas Homes' Q4 2025 earnings at $0.34 EPS, FY2025 earnings at $1.13 EPS, Q1 2026 earnings at $0.20 EPS, Q4 2026 earnings at $0.44 EPS and FY2026 earnings at $1.23 EPS.

Smith Douglas Homes (NYSE:SDHC - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The company reported ($0.13) EPS for the quarter, missing analysts' consensus estimates of $0.25 by ($0.38). The business had revenue of $223.92 million during the quarter, compared to analyst estimates of $216.01 million. Smith Douglas Homes had a net margin of 1.43% and a return on equity of 1.74%.

SDHC has been the topic of a number of other reports. Wall Street Zen cut shares of Smith Douglas Homes from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Royal Bank Of Canada set a $16.00 price objective on shares of Smith Douglas Homes and gave the company a "sector perform" rating in a research note on Tuesday, May 20th. Finally, JPMorgan Chase & Co. decreased 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 note on Wednesday, May 21st. Two analysts have rated the stock with a sell rating and four have assigned a hold rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $18.90.

Smith Douglas Homes Stock Performance

NYSE SDHC traded down $0.74 during trading hours on Wednesday, reaching $20.22. The company's stock had a trading volume of 63,633 shares, compared to its average volume of 64,637. The stock has a market cap of $1.04 billion, a PE ratio of 12.71, a PEG ratio of 12.98 and a beta of 1.05. Smith Douglas Homes has a fifty-two week low of $16.28 and a fifty-two week high of $39.50. The company's 50-day moving average is $19.59 and its two-hundred day moving average is $20.07.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the business. Wellington Management Group LLP raised its stake in shares of 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 purchasing an additional 298,227 shares during the period. Wasatch Advisors LP increased its stake in Smith Douglas Homes by 438.9% during the fourth quarter. Wasatch Advisors LP now owns 1,156,019 shares of the company's stock valued at $29,640,000 after purchasing an additional 941,511 shares during the last quarter. Beck Mack & Oliver LLC increased its stake in Smith Douglas Homes by 20.2% during the first quarter. Beck Mack & Oliver LLC now owns 840,975 shares of the company's stock valued at $16,416,000 after purchasing an additional 141,545 shares during the last quarter. Massachusetts Financial Services Co. MA increased its stake in Smith Douglas Homes by 11.6% during the first quarter. Massachusetts Financial Services Co. MA now owns 486,509 shares of the company's stock valued at $9,497,000 after purchasing an additional 50,713 shares during the last quarter. Finally, First Eagle Investment Management LLC increased its stake in Smith Douglas Homes by 1.7% during the second quarter. First Eagle Investment Management LLC now owns 240,382 shares of the company's stock valued at $4,668,000 after purchasing an additional 4,000 shares during the last quarter.

Insider Activity at Smith Douglas Homes

In related news, insider Russell Devendorf bought 3,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 21st. The shares were acquired at an average cost of $16.80 per share, with a total value of $50,400.00. Following the completion of the transaction, the insider 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Jeffrey T. Jackson purchased 6,000 shares of the business'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 acquisition, 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 disclosure for this purchase can be found here. Insiders acquired a total of 40,652 shares of company stock valued at $748,964 over the last three months. Insiders own 82.71% of the company's stock.

Smith Douglas Homes announced that its board has authorized a stock repurchase plan on Wednesday, May 28th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the company to reacquire up to 5.1% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board of directors believes its shares are undervalued.

About Smith Douglas Homes

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.