Smith Douglas Homes (NYSE:SDHC) Shares Up 7.1% After Insider Buying Activity

Smith Douglas Homes Corp. (NYSE:SDHC)’s stock price rose 7.1% on Thursday after an insider bought additional shares in the company. The stock traded as high as $19.06 and last traded at $19.11. Approximately 124,457 shares changed hands during mid-day trading, an increase of 25% from the average daily volume of 99,889 shares. The stock had previously closed at $17.85.

Specifically, Director Neill B. Faucett bought 7,000 shares of Smith Douglas Homes stock in a transaction that occurred on Friday, May 23rd. The stock was acquired at an average cost of $17.36 per share, for a total transaction of $121,520.00. Following the completion of the transaction, the director now directly owns 14,505 shares in the company, valued at $251,806.80. This represents a 93.27% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on SDHC. Royal Bank of Canada set a $16.00 price target on Smith Douglas Homes and gave the company a “sector perform” rating in a report on Tuesday, May 20th. Wells Fargo & Company lowered their target price on shares of Smith Douglas Homes from $21.00 to $20.00 and set an “equal weight” rating on the stock in a research note on Monday, April 14th. Wedbush reissued a “neutral” rating and issued a $18.00 price target on shares of Smith Douglas Homes in a research note on Wednesday, May 14th. Finally, JPMorgan Chase & Co. decreased their price target on shares of Smith Douglas Homes from $24.00 to $18.50 and set a “neutral” rating on the stock in a report on Wednesday, May 21st. One investment analyst has rated the stock with a sell rating and four have issued a hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $18.90.

Smith Douglas Homes Trading Down 2.5%

The stock has a market capitalization of $962.20 million, a PE ratio of 10.82, a PEG ratio of 6.87 and a beta of 1.28. The business has a fifty day moving average price of $18.92 and a 200-day moving average price of $23.44.

Smith Douglas Homes (NYSE:SDHC) last issued its earnings results on Wednesday, March 12th. The company reported $0.46 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.46. Smith Douglas Homes had a return on equity of 21.01% and a net margin of 4.60%. The business had revenue of $287.49 million during the quarter, compared to analyst estimates of $265.85 million. On average, equities analysts anticipate that Smith Douglas Homes Corp. will post 1.73 earnings per share for the current fiscal year.

Smith Douglas Homes announced that its Board of Directors has initiated a share buyback plan on Wednesday, May 28th that allows the company to repurchase $50.00 million in shares. This repurchase authorization allows the company to reacquire up to 5.1% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board believes its shares are undervalued.

Hedge Funds Weigh In On Smith Douglas Homes

Several institutional investors and hedge funds have recently made changes to their positions in SDHC. PDT Partners LLC lifted its stake in Smith Douglas Homes by 10.7% in the first quarter. PDT Partners LLC now owns 13,988 shares of the company’s stock worth $273,000 after purchasing an additional 1,349 shares during the last quarter. Beck Mack & Oliver LLC increased its holdings in shares of Smith Douglas Homes by 20.2% in the first quarter. Beck Mack & Oliver LLC now owns 840,975 shares of the company’s stock worth $16,416,000 after buying an additional 141,545 shares during the period. Trexquant Investment LP increased its holdings in shares of Smith Douglas Homes by 93.1% in the first quarter. Trexquant Investment LP now owns 16,420 shares of the company’s stock worth $321,000 after buying an additional 7,916 shares during the period. Wellington Management Group LLP lifted its stake in shares of Smith Douglas Homes by 32.7% in the 1st quarter. Wellington Management Group LLP now owns 1,211,274 shares of the company’s stock valued at $23,644,000 after acquiring an additional 298,227 shares during the last quarter. Finally, Victory Capital Management Inc. boosted its holdings in Smith Douglas Homes by 80.2% during the 1st quarter. Victory Capital Management Inc. now owns 14,395 shares of the company’s stock valued at $281,000 after acquiring an additional 6,406 shares during the period.

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.