Smith Douglas Homes (NYSE:SDHC) Trading Down 11.1% Following Weak Earnings

Smith Douglas Homes Corp. (NYSE:SDHC)’s share price fell 11.1% during trading on Thursday following a dissappointing earnings announcement. The company traded as low as $13.64 and last traded at $13.83. 17,401 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 100,106 shares. The stock had previously closed at $15.55.

The company reported $0.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.08). The company had revenue of $273.03 million during the quarter, compared to analysts’ expectations of $258.10 million. Smith Douglas Homes had a net margin of 0.64% and a negative return on equity of 0.19%.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the stock. Weiss Ratings reissued a “sell (d+)” rating on shares of Smith Douglas Homes in a research note on Friday, July 17th. Wall Street Zen upgraded Smith Douglas Homes from a “sell” rating to a “hold” rating in a research note on Saturday, June 13th. Finally, Zacks Research upgraded Smith Douglas Homes from a “strong sell” rating to a “hold” rating in a report on Friday, May 15th. One 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. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and a consensus price target of $13.90.

Institutional Investors Weigh In On Smith Douglas Homes

Several large investors have recently made changes to their positions in SDHC. State Street Corp grew its position in Smith Douglas Homes by 2.7% in the fourth quarter. State Street Corp now owns 42,312 shares of the company’s stock valued at $710,000 after acquiring an additional 1,100 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of Smith Douglas Homes by 1.4% during the fourth quarter. Geode Capital Management LLC now owns 104,422 shares of the company’s stock valued at $1,752,000 after purchasing an additional 1,406 shares during the period. First Trust Advisors LP lifted its position in shares of Smith Douglas Homes by 5.8% during the second quarter. First Trust Advisors LP now owns 29,025 shares of the company’s stock worth $564,000 after purchasing an additional 1,583 shares in the last quarter. Raymond James Financial Inc. acquired a new position in shares of Smith Douglas Homes during the second quarter worth $34,000. Finally, Ruane Cunniff & Goldfarb L.P. boosted its stake in shares of Smith Douglas Homes by 18.7% in the first quarter. Ruane Cunniff & Goldfarb L.P. now owns 14,490 shares of the company’s stock valued at $185,000 after purchasing an additional 2,281 shares during the period.

Smith Douglas Homes Stock Down 1.0%

The firm’s 50 day moving average price is $14.51 and its two-hundred day moving average price is $14.63. The firm has a market capitalization of $706.35 million, a PE ratio of 19.32 and a beta of 0.88.

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.