Smith Douglas Homes (NYSE:SDHC) Shares Gap Up – Still a Buy?

Smith Douglas Homes Corp. (NYSE:SDHC)’s share price gapped up prior to trading on Monday . The stock had previously closed at $11.39, but opened at $12.62. Smith Douglas Homes shares last traded at $13.04, with a volume of 22,187 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on SDHC shares. Zacks Research cut Smith Douglas Homes from a “hold” rating to a “strong sell” rating in a report on Wednesday, February 18th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Smith Douglas Homes in a research note on Thursday, January 22nd. JPMorgan Chase & Co. restated a “neutral” rating and issued a $17.00 price target on shares of Smith Douglas Homes in a research note on Friday, November 21st. Wall Street Zen raised Smith Douglas Homes from a “sell” rating to a “hold” rating in a report on Saturday. Finally, UBS Group reissued a “positive” rating on shares of Smith Douglas Homes in a report on Monday, December 1st. One analyst has rated the stock with a Buy rating, five have given a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Reduce” and an average price target of $15.80.

Smith Douglas Homes Price Performance

The company has a market capitalization of $687.37 million, a price-to-earnings ratio of 11.23 and a beta of 1.04. The business’s 50-day moving average price is $17.51 and its two-hundred day moving average price is $17.99.

Smith Douglas Homes (NYSE:SDHC) last issued its quarterly earnings results on Wednesday, March 11th. 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 1.03% and a net margin of 1.10%.The company had revenue of $260.43 million for the quarter, compared to analyst estimates of $251.09 million. As a group, research analysts predict that Smith Douglas Homes Corp. will post 1.73 EPS for the current year.

Institutional Trading of Smith Douglas Homes

Several large investors have recently modified their holdings of SDHC. Geode Capital Management LLC raised its stake in Smith Douglas Homes by 8.8% in the second quarter. Geode Capital Management LLC now owns 101,896 shares of the company’s stock valued at $1,980,000 after purchasing an additional 8,201 shares in the last quarter. First Trust Advisors LP lifted its holdings in shares of Smith Douglas Homes by 5.8% during the 2nd quarter. First Trust Advisors LP now owns 29,025 shares of the company’s stock worth $564,000 after acquiring an additional 1,583 shares during the period. Marshall Wace LLP bought a new stake in shares of Smith Douglas Homes during the 2nd quarter worth approximately $644,000. Raymond James Financial Inc. acquired a new stake in shares of Smith Douglas Homes during the 2nd quarter worth approximately $34,000. Finally, Wasatch Advisors LP increased its stake in Smith Douglas Homes by 4.4% in the second quarter. Wasatch Advisors LP now owns 1,279,357 shares of the company’s stock valued at $24,845,000 after acquiring an additional 53,358 shares during the last quarter.

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.