Smith Douglas Homes (NYSE:SDHC) Shares Gap Down – Time to Sell?

Smith Douglas Homes Corp. (NYSE:SDHC) shares gapped down prior to trading on Tuesday . The stock had previously closed at $22.05, but opened at $20.35. Smith Douglas Homes shares last traded at $20.8290, with a volume of 3,018 shares traded.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on SDHC shares. Royal Bank Of Canada cut their price target on Smith Douglas Homes from $16.00 to $15.00 and set a “sector perform” rating for the company in a report on Friday, November 7th. Wells Fargo & Company cut their price objective on Smith Douglas Homes from $20.00 to $18.00 and set an “equal weight” rating for the company in a research note on Friday, November 7th. Bank of America decreased their target price on shares of Smith Douglas Homes from $17.00 to $15.00 and set an “underperform” rating on the stock in a research note on Friday, October 10th. Zacks Research lowered shares of Smith Douglas Homes from a “hold” rating to a “strong sell” rating in a research report on Wednesday, November 12th. Finally, JPMorgan Chase & Co. restated a “neutral” rating and set a $17.00 price objective on shares of Smith Douglas Homes in a research report on Friday, November 21st. One research analyst has rated the stock with a Buy rating, five have given a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Smith Douglas Homes has a consensus rating of “Reduce” and a consensus price target of $16.60.

Smith Douglas Homes Stock Up 1.9%

The company has a fifty day moving average price of $18.98 and a 200-day moving average price of $18.83. The stock has a market capitalization of $1.10 billion, a P/E ratio of 17.04, a PEG ratio of 17.26 and a beta of 0.95.

Smith Douglas Homes (NYSE:SDHC) last announced its earnings results on Wednesday, November 5th. The company reported ($0.12) EPS for the quarter, missing analysts’ consensus estimates of $0.26 by ($0.38). The company had revenue of $262.04 million during the quarter, compared to analysts’ expectations of $251.41 million. Smith Douglas Homes had a return on equity of 0.12% and a net margin of 1.13%. As a group, research analysts expect that Smith Douglas Homes Corp. will post 1.73 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Smith Douglas Homes

Several hedge funds have recently added to or reduced their stakes in SDHC. First Eagle Investment Management LLC lifted its stake in Smith Douglas Homes by 38.0% in the third quarter. First Eagle Investment Management LLC now owns 331,674 shares of the company’s stock worth $5,857,000 after purchasing an additional 91,292 shares during the last quarter. Wasatch Advisors LP boosted its holdings in Smith Douglas Homes by 4.4% during the 2nd quarter. Wasatch Advisors LP now owns 1,279,357 shares of the company’s stock valued at $24,845,000 after acquiring an additional 53,358 shares during the period. Covey Capital Advisors LLC bought a new position in Smith Douglas Homes in the 2nd quarter valued at $705,000. Marshall Wace LLP bought a new position in Smith Douglas Homes in the 2nd quarter valued at $644,000. Finally, Victory Capital Management Inc. purchased a new stake in Smith Douglas Homes in the third quarter worth $346,000.

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. was founded in 2008 and is headquartered in Woodstock, Georgia.