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) - Equities research analysts at Wedbush cut their Q3 2025 earnings per share 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 anticipates that the company will post earnings of $0.26 per share for the quarter, down from their previous forecast of $0.48. Wedbush has a "Neutral" rating and a $18.00 price objective 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.

Several other research firms have also recently commented on SDHC. JPMorgan Chase & Co. cut their price target on Smith Douglas Homes from $24.00 to $18.50 and set a "neutral" rating for the company in a research note on Wednesday, May 21st. Wall Street Zen cut Smith Douglas Homes from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Finally, Royal Bank Of Canada set a $16.00 price target on Smith Douglas Homes and gave the company a "sector perform" rating in a research report on Tuesday, May 20th. Two equities research analysts have rated the stock with a sell rating and four have assigned a hold rating to the company's stock. According to data from MarketBeat, Smith Douglas Homes presently has an average rating of "Hold" and a consensus target price of $18.90.

Smith Douglas Homes Stock Performance

NYSE SDHC remained flat at $20.19 on Wednesday. The company's stock had a trading volume of 167,133 shares, compared to its average volume of 64,543. Smith Douglas Homes has a one year low of $16.28 and a one year high of $39.50. The company's 50-day moving average is $19.60 and its 200-day moving average is $20.01. The firm has a market capitalization of $1.04 billion, a PE ratio of 12.70, a P/E/G ratio of 12.46 and a beta of 1.05.

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

Smith Douglas Homes declared that its Board of Directors has initiated a share buyback program on Wednesday, May 28th that authorizes the company to repurchase $50.00 million in shares. This repurchase authorization authorizes the company to purchase up to 5.1% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its stock is undervalued.

Insider Activity at Smith Douglas Homes

In other Smith Douglas Homes news, Director Neill B. Faucett acquired 7,000 shares of the company's stock in a transaction on Friday, May 23rd. The shares were bought at an average cost of $17.36 per share, for a total transaction of $121,520.00. Following the acquisition, the director directly owned 14,505 shares of the company's stock, valued at $251,806.80. This trade represents a 93.27% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director George Ervin Perdue III acquired 1,400 shares of Smith Douglas Homes stock in a transaction that occurred on Friday, June 13th. The shares were bought at an average price of $18.25 per share, with a total value of $25,550.00. Following the transaction, the director directly owned 40,384 shares in the company, valued at approximately $737,008. This trade represents a 3.59% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last ninety days, insiders have purchased 34,652 shares of company stock worth $638,024. 82.71% of the stock is currently owned by company insiders.

Institutional Trading of Smith Douglas Homes

A number of hedge funds and other institutional investors have recently modified their holdings of SDHC. Raymond James Financial Inc. purchased a new position in Smith Douglas Homes in the second quarter valued at about $34,000. Tower Research Capital LLC TRC acquired a new position in shares of Smith Douglas Homes during the 2nd quarter worth about $90,000. M&T Bank Corp raised its holdings in Smith Douglas Homes by 8.4% in the 1st quarter. M&T Bank Corp now owns 11,001 shares of the company's stock valued at $215,000 after acquiring an additional 848 shares in the last quarter. Trexquant Investment LP acquired a new position in Smith Douglas Homes in the 4th quarter valued at approximately $218,000. Finally, PDT Partners LLC raised its holdings in Smith Douglas Homes by 10.7% in the 1st quarter. PDT Partners LLC now owns 13,988 shares of the company's stock valued at $273,000 after acquiring an additional 1,349 shares in 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.