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

Shares of Smith Douglas Homes Corp. (NYSE:SDHC) gapped down before the market opened on Wednesday . The stock had previously closed at $11.29, but opened at $10.72. Smith Douglas Homes shares last traded at $10.95, with a volume of 2,625 shares.

Wall Street Analyst Weigh In

A number of research firms recently commented on SDHC. Zacks Research raised shares of Smith Douglas Homes from a “strong sell” rating to a “hold” rating in a research note on Friday, May 15th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Smith Douglas Homes in a research note on Tuesday, April 21st. Zelman & Associates assumed coverage on shares of Smith Douglas Homes in a research report on Monday, April 6th. They issued a “neutral” rating and a $13.50 price objective for the company. Wells Fargo & Company lowered their price objective on shares of Smith Douglas Homes from $18.00 to $14.00 and set an “equal weight” rating for the company in a research report on Thursday, March 12th. Finally, Wall Street Zen raised shares of Smith Douglas Homes from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. One research analyst has rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $13.90.

Smith Douglas Homes Stock Performance

The firm has a market cap of $590.06 million, a P/E ratio of 12.23 and a beta of 1.31. The firm’s fifty day moving average price is $12.98 and its 200 day moving average price is $16.39.

Smith Douglas Homes (NYSE:SDHC) last posted its quarterly earnings results 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 net margin of 0.90% and a negative return on equity of 0.78%. The business had revenue of $206.44 million during the quarter, compared to analyst estimates of $200.70 million. As a group, analysts expect that Smith Douglas Homes Corp. will post 0.35 earnings per share for the current fiscal year.

Insider Activity

In related news, Director George Ervin Perdue III purchased 20,300 shares of the firm’s stock in a transaction on Friday, March 13th. The stock was acquired at an average price of $12.27 per share, with a total value of $249,081.00. Following the completion of the acquisition, the director owned 60,684 shares in the company, valued at approximately $744,592.68. This represents a 50.27% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Insiders have acquired a total of 22,000 shares of company stock valued at $268,607 over the last three months. Company insiders own 82.71% of the company’s stock.

Institutional Trading of Smith Douglas Homes

A number of hedge funds and other institutional investors have recently made changes to their positions in SDHC. Conifer Management L.L.C. grew its position in Smith Douglas Homes by 68.3% during 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 buying an additional 581,794 shares during the period. First Eagle Investment Management LLC grew its position in Smith Douglas Homes by 38.0% during the third 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 grew its position in Smith Douglas Homes by 6.2% during the fourth 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 stake in Smith Douglas Homes during the second quarter valued at $644,000. Finally, Dimensional Fund Advisors LP acquired a new stake in Smith Douglas Homes during the first quarter valued at $324,000.

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.