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

Smith Douglas Homes Corp. (NYSE:SDHC)’s stock price fell 8.5% on Thursday . The stock traded as low as $12.09 and last traded at $12.25. 162,314 shares traded hands during mid-day 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

Several research firms have recently commented on SDHC. Wall Street Zen raised shares of Smith Douglas Homes from a “sell” rating to a “hold” rating in a research report on Saturday, March 14th. BTIG Research assumed coverage on shares of Smith Douglas Homes in a research report on Monday, December 1st. They issued a “neutral” rating on the stock. JPMorgan Chase & Co. lowered their target price on shares of Smith Douglas Homes from $19.00 to $12.00 and set a “neutral” rating for the company in a research note on Monday. Zacks Research cut shares of Smith Douglas Homes from a “hold” rating to a “strong sell” rating in a research report on Wednesday, February 18th. Finally, Wells Fargo & Company decreased their price objective on shares of Smith Douglas Homes from $18.00 to $14.00 and set an “equal weight” rating on the stock in a report on Thursday, March 12th. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, Smith Douglas Homes presently has a consensus rating of “Reduce” and a consensus price target of $14.80.

Smith Douglas Homes Trading Down 10.4%

The company has a market capitalization of $617.40 million, a price-to-earnings ratio of 10.08 and a beta of 1.04. The stock’s fifty day simple moving average is $17.25 and its 200-day simple moving average is $17.87.

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 negative return on equity of 1.03% and a net margin of 1.10%.The business had revenue of $260.43 million during the quarter, compared to analyst estimates of $251.09 million. On average, analysts anticipate that Smith Douglas Homes Corp. will post 1.73 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director George Ervin Perdue III purchased 20,300 shares of the firm’s stock in a transaction that occurred on 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 completion of the purchase, the director directly owned 60,684 shares of the company’s stock, valued at $744,592.68. The trade was a 50.27% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders have purchased a total of 22,000 shares of company stock valued at $268,607 over the last 90 days. 82.71% of the stock is owned by company insiders.

Institutional Investors Weigh In On Smith Douglas Homes

Institutional investors have recently modified their holdings of the company. Conifer Management L.L.C. boosted its holdings 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 lifted its position in shares of Smith Douglas Homes by 38.0% during the 3rd quarter. First Eagle Investment Management LLC now owns 331,674 shares of the company’s stock worth $5,857,000 after buying an additional 91,292 shares during the last quarter. Wasatch Advisors LP boosted its holdings in shares of 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 in the last quarter. Marshall Wace LLP purchased a new position in shares of Smith Douglas Homes in the 2nd quarter valued at $644,000. Finally, Wellington Management Group LLP raised its stake in 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 in 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.