Smith Douglas Homes (NYSE:SDHC) Reaches New 1-Year Low – Should You Sell?

Smith Douglas Homes Corp. (NYSE:SDHC) shares reached a new 52-week low on Thursday. The company traded as low as $9.75 and last traded at $9.85, with a volume of 10438 shares changing hands. The stock had previously closed at $9.88.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Smith Douglas Homes in a research report on Friday, July 17th. Wall Street Zen raised shares of Smith Douglas Homes from a “sell” rating to a “hold” rating in a research report on Saturday, June 13th. One investment analyst has rated the stock with a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus price target of $13.90.

Smith Douglas Homes Stock Performance

The company has a market capitalization of $507.28 million, a P/E ratio of 13.86 and a beta of 0.90. The stock has a 50 day moving average price of $11.95 and a 200 day moving average price of $13.05.

Smith Douglas Homes (NYSE:SDHC) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.11 by ($0.08). Smith Douglas Homes had a net margin of 0.64% and a negative return on equity of 0.19%. The company had revenue of $273.03 million for the quarter, compared to the consensus estimate of $258.10 million. As a group, sell-side analysts expect that Smith Douglas Homes Corp. will post 0.25 earnings per share for the current year.

Institutional Investors Weigh In On Smith Douglas Homes

Several large investors have recently modified their holdings of the stock. Conifer Management L.L.C. bought a new stake in shares of Smith Douglas Homes in the 2nd quarter worth approximately $22,274,259. Dimensional Fund Advisors LP purchased a new stake in Smith Douglas Homes in the first quarter worth $324,000. Hsbc Holdings PLC bought a new stake in shares of Smith Douglas Homes in the first quarter valued at $168,000. Squarepoint Ops LLC raised its stake in shares of Smith Douglas Homes by 37.1% in the second quarter. Squarepoint Ops LLC now owns 31,818 shares of the company’s stock valued at $494,000 after buying an additional 8,606 shares during the period. Finally, Ruane Cunniff & Goldfarb L.P. lifted its position in shares of Smith Douglas Homes by 18.7% during the 1st quarter. Ruane Cunniff & Goldfarb L.P. now owns 14,490 shares of the company’s stock valued at $185,000 after buying an additional 2,281 shares during the last quarter.

About Smith Douglas Homes

Smith Douglas Homes Corp. is a residential homebuilder that designs, constructs and sells single-family homes in selected markets across the southeastern and southern United States. The company focuses primarily on building attainable homes for first-time and move-up buyers.

Its homes are offered in a range of floor plans and configurations, with options intended to address varying household sizes, lifestyles and budgets. In addition to constructing homes, Smith Douglas Homes typically acquires and develops residential lots, manages the homebuilding process and provides customer service to homebuyers.

Founded in 2008, the company has expanded its operations across several markets, including communities in Georgia, Alabama, Tennessee, North Carolina and Texas.