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

Smith Douglas Homes Corp. (NYSE:SDHC)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $15.44, but opened at $14.49. Smith Douglas Homes shares last traded at $14.61, with a volume of 3,602 shares trading hands.

Analyst Ratings Changes

Several analysts recently weighed in on SDHC shares. Zelman & Associates assumed coverage on shares of Smith Douglas Homes in a report on Monday, April 6th. They issued a “neutral” rating and a $13.50 price target on the stock. Wall Street Zen upgraded shares of Smith Douglas Homes from a “sell” rating to a “hold” rating in a report on Saturday, June 13th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Smith Douglas Homes in a research note on Friday, July 17th. Finally, Zacks Research upgraded shares of Smith Douglas Homes from a “strong sell” rating to a “hold” rating in a research report on Friday, May 15th. One 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 stock. Based on data from MarketBeat.com, Smith Douglas Homes presently has a consensus rating of “Reduce” and an average target price of $13.90.

Smith Douglas Homes Price Performance

The company has a market capitalization of $747.48 million, a PE ratio of 15.49 and a beta of 0.87. The company has a 50 day moving average of $13.73 and a two-hundred day moving average of $14.96.

Smith Douglas Homes (NYSE:SDHC) last announced its quarterly earnings data on Wednesday, April 29th. The company reported $0.06 EPS for the quarter, beating the consensus estimate of $0.05 by $0.01. Smith Douglas Homes had a negative return on equity of 0.78% and a net margin of 0.90%.The business had revenue of $206.44 million during the quarter, compared to analyst estimates of $200.70 million. On average, equities analysts anticipate that Smith Douglas Homes Corp. will post 0.48 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of SDHC. Ruane Cunniff & Goldfarb L.P. boosted its stake in Smith Douglas Homes by 18.7% during the first quarter. Ruane Cunniff & Goldfarb L.P. now owns 14,490 shares of the company’s stock worth $185,000 after acquiring an additional 2,281 shares in the last quarter. Dimensional Fund Advisors LP purchased a new stake in Smith Douglas Homes in the first quarter worth about $324,000. Hsbc Holdings PLC bought a new position in shares of Smith Douglas Homes during the first quarter valued at approximately $168,000. VARCOV Co. bought a new position in shares of Smith Douglas Homes during the fourth quarter valued at approximately $200,000. Finally, Wellington Management Group LLP lifted its holdings in shares of Smith Douglas Homes by 2.2% during the fourth 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.

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.