Smith Douglas Homes (NYSE:SDHC) Shares Down 8.8% on Disappointing Earnings

Shares of Smith Douglas Homes Corp. (NYSE:SDHC) dropped 8.8% during trading on Wednesday following a dissappointing earnings announcement. The company traded as low as $12.25 and last traded at $12.25. Approximately 146,252 shares were traded during mid-day trading, an increase of 87% from the average daily volume of 78,157 shares. The stock had previously closed at $13.43.

The company reported ($0.08) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.20). Smith Douglas Homes had a negative return on equity of 1.05% and a net margin of 1.10%.The firm had revenue of $260.43 million for the quarter, compared to the consensus estimate of $251.09 million.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Zacks Research cut Smith Douglas Homes from a “hold” rating to a “strong sell” rating in a research report on Wednesday, February 18th. 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 on the stock in a research note on Thursday. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $17.00 price objective on shares of Smith Douglas Homes in a research note on Friday, November 21st. BTIG Research began coverage on shares of Smith Douglas Homes in a report on Monday, December 1st. They issued a “neutral” rating for the company. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of Smith Douglas Homes in a research report on Thursday, January 22nd. One equities research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company has an average rating of “Reduce” and an average price target of $15.80.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Conifer Management L.L.C. raised its stake in Smith Douglas Homes by 68.3% in the fourth quarter. Conifer Management L.L.C. now owns 1,433,350 shares of the company’s stock valued at $24,037,000 after purchasing an additional 581,794 shares in the last quarter. First Eagle Investment Management LLC increased its holdings in Smith Douglas Homes by 38.0% in the 3rd quarter. First Eagle Investment Management LLC now owns 331,674 shares of the company’s stock valued at $5,857,000 after buying an additional 91,292 shares during the period. Wasatch Advisors LP increased its holdings in Smith Douglas Homes by 6.2% in the 4th quarter. Wasatch Advisors LP now owns 1,249,857 shares of the company’s stock valued at $20,960,000 after buying an additional 72,525 shares during the period. Marshall Wace LLP acquired a new position in shares of Smith Douglas Homes in the 2nd quarter valued at approximately $644,000. Finally, Wellington Management Group LLP lifted its holdings in shares of Smith Douglas Homes by 2.2% during the 4th quarter. Wellington Management Group LLP now owns 1,176,973 shares of the company’s stock worth $19,738,000 after acquiring an additional 24,996 shares during the period.

Smith Douglas Homes Stock Performance

The company has a market cap of $650.33 million, a P/E ratio of 10.62 and a beta of 1.04. The stock’s fifty day moving average price is $17.51 and its two-hundred day moving average price is $18.02.

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.