Smith Douglas Homes (NYSE:SDHC) Shares Gap Down – What’s Next?

Smith Douglas Homes Corp. (NYSE:SDHC)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $11.29, but opened at $10.72. Smith Douglas Homes shares last traded at $10.95, with a volume of 2,625 shares changing hands.

Analyst Ratings Changes

Several research firms recently commented on SDHC. Wells Fargo & Company cut their price target on Smith Douglas Homes from $18.00 to $14.00 and set an “equal weight” rating for the company in a report on Thursday, March 12th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Smith Douglas Homes in a report on Tuesday, April 21st. Zelman & Associates began coverage on Smith Douglas Homes in a report on Monday, April 6th. They issued a “neutral” rating and a $13.50 price target for the company. Wall Street Zen raised Smith Douglas Homes from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. Finally, Zacks Research raised Smith Douglas Homes from a “strong sell” rating to a “hold” rating in a report on Friday, May 15th. One equities research analyst has rated the stock with a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Smith Douglas Homes has an average rating of “Reduce” and a consensus price target of $13.90.

Smith Douglas Homes Price Performance

The firm has a market capitalization of $580.42 million, a price-to-earnings ratio of 12.03 and a beta of 1.31. The stock has a 50 day moving average price of $13.06 and a two-hundred day moving average price of $16.48.

Smith Douglas Homes (NYSE:SDHC) last posted its quarterly earnings data on Wednesday, April 29th. The company reported $0.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.01. The firm had revenue of $206.44 million for the quarter, compared to the consensus estimate of $200.70 million. Smith Douglas Homes had a negative return on equity of 0.78% and a net margin of 0.90%. As a group, research analysts expect that Smith Douglas Homes Corp. will post 0.35 earnings per share for the current fiscal year.

Insider Activity

In other news, Director George Ervin Perdue III acquired 20,300 shares of the business’s stock in a transaction that occurred on Friday, March 13th. The shares were purchased at an average price of $12.27 per share, for a total transaction of $249,081.00. Following the acquisition, the director owned 60,684 shares of the company’s stock, valued at $744,592.68. This represents a 50.27% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In the last quarter, insiders acquired 22,000 shares of company stock valued at $268,607.

Institutional Investors Weigh In On Smith Douglas Homes

Several institutional investors and hedge funds have recently modified their holdings of SDHC. Raymond James Financial Inc. purchased a new stake in shares of Smith Douglas Homes in the 2nd quarter valued at $34,000. Tower Research Capital LLC TRC purchased a new stake in shares of Smith Douglas Homes in the 2nd quarter valued at $90,000. Hsbc Holdings PLC purchased a new stake in shares of Smith Douglas Homes in the 1st quarter valued at $168,000. Price T Rowe Associates Inc. MD purchased a new stake in shares of Smith Douglas Homes in the 4th quarter valued at $182,000. Finally, Ruane Cunniff & Goldfarb L.P. raised its holdings in shares of Smith Douglas Homes by 18.7% in 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 period.

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.