Smith Douglas Homes (NYSE:SDHC) Shares Down 8.5% – Should You Sell?

Shares of Smith Douglas Homes Corp. (NYSE:SDHC) fell 8.5% during trading on Thursday . The stock traded as low as $12.09 and last traded at $12.25. 162,314 shares traded hands during trading, an increase of 59% from the average session volume of 102,135 shares. The stock had previously closed at $13.39.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. BTIG Research initiated coverage on shares of Smith Douglas Homes in a research note on Monday, December 1st. They issued a “neutral” rating for the company. JPMorgan Chase & Co. dropped their target price on shares of Smith Douglas Homes from $19.00 to $12.00 and set a “neutral” rating on the stock in a report on Monday, March 16th. Weiss Ratings reissued a “sell (d+)” rating on shares of Smith Douglas Homes in a research report on Thursday, January 22nd. Wells Fargo & Company decreased their price target on shares of 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. Finally, UBS Group reiterated a “positive” rating on shares of Smith Douglas Homes in a research note on Monday, December 1st. One analyst has rated the stock with a Buy rating, five have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Reduce” and an average price target of $14.80.

Smith Douglas Homes Stock Down 2.5%

The firm has a market capitalization of $580.87 million, a price-to-earnings ratio of 9.49 and a beta of 1.04. The business has a 50-day moving average of $16.97 and a two-hundred day moving average of $17.77.

Smith Douglas Homes (NYSE:SDHC) last posted its quarterly earnings results on Wednesday, March 11th. The company reported ($0.08) EPS for the quarter, missing the consensus estimate of $0.12 by ($0.20). Smith Douglas Homes had a net margin of 1.10% and a negative return on equity of 1.03%. The firm had revenue of $260.43 million during the quarter, compared to analyst estimates of $251.09 million. Equities analysts predict that Smith Douglas Homes Corp. will post 1.73 EPS for the current fiscal year.

Insider Transactions at Smith Douglas Homes

In other Smith Douglas Homes news, Director George Ervin Perdue III acquired 20,300 shares of the company’s stock in a transaction dated Friday, March 13th. The stock was bought at an average price of $12.27 per share, for a total transaction of $249,081.00. Following the purchase, the director owned 60,684 shares in the company, valued at $744,592.68. This represents a 50.27% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Over the last 90 days, insiders have acquired 22,000 shares of company stock valued at $268,607. Insiders own 82.71% of the company’s stock.

Institutional Investors Weigh In On Smith Douglas Homes

Several institutional investors and hedge funds have recently made changes to their positions in the company. VARCOV Co. acquired a new position in Smith Douglas Homes in the fourth quarter valued at about $200,000. Wellington Management Group LLP raised its position in Smith Douglas Homes by 2.2% in the 4th quarter. Wellington Management Group LLP now owns 1,176,973 shares of the company’s stock valued at $19,738,000 after purchasing an additional 24,996 shares during the last quarter. Price T Rowe Associates Inc. MD acquired a new position in Smith Douglas Homes in the fourth quarter worth $182,000. State Street Corp boosted its stake in Smith Douglas Homes by 2.7% in the fourth quarter. State Street Corp now owns 42,312 shares of the company’s stock worth $710,000 after purchasing an additional 1,100 shares in the last quarter. Finally, Wells Fargo & Company MN grew its holdings in shares of Smith Douglas Homes by 5.1% during the fourth quarter. Wells Fargo & Company MN now owns 128,597 shares of the company’s stock worth $2,157,000 after purchasing an additional 6,191 shares during 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. was founded in 2008 and is headquartered in Woodstock, Georgia.