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

Smith Douglas Homes Corp. (NYSE:SDHC)’s share price traded up 7.1% during mid-day trading 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. 124,457 shares were traded during trading, an increase of 25% from the average session volume of 99,889 shares. The stock had previously closed at $17.85.

Specifically, Director Neill B. Faucett acquired 7,000 shares of the firm’s stock in a transaction on Friday, May 23rd. The shares were bought at an average price of $17.36 per share, for a total transaction of $121,520.00. Following the acquisition, the director now owns 14,505 shares of the company’s stock, valued at approximately $251,806.80. This trade represents a 93.27% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink.

Analyst Ratings Changes

A number of research firms have recently issued reports on SDHC. Wedbush restated a “neutral” rating and issued a $18.00 price target on shares of Smith Douglas Homes in a research report on Wednesday, May 14th. Royal Bank of Canada set a $16.00 price objective on shares of 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 for the company in a research note on Monday, April 14th. Finally, JPMorgan Chase & Co. decreased their price objective 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 research analyst has rated the stock with a sell rating and four have assigned a hold rating to the company. According to data from MarketBeat.com, Smith Douglas Homes presently has a consensus rating of “Hold” and a consensus target price of $18.90.

Smith Douglas Homes Stock Performance

The firm has a market capitalization of $985.34 million, a price-to-earnings ratio of 11.08, a PEG ratio of 6.87 and a beta of 1.28. The company has a 50-day moving average price of $18.95 and a 200-day moving average price of $23.53.

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, meeting the consensus estimate of $0.46. Smith Douglas Homes had a net margin of 4.60% and a return on equity of 21.01%. The business had revenue of $287.49 million during the quarter, compared to analysts’ expectations of $265.85 million. On average, research analysts expect that Smith Douglas Homes Corp. will post 1.73 earnings per share for the current fiscal year.

Smith Douglas Homes announced that its board has authorized a stock buyback plan on Wednesday, May 28th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the company to purchase up to 5.1% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Institutional Investors Weigh In On Smith Douglas Homes

Large investors have recently modified their holdings of the company. Yorktown Management & Research Co Inc acquired a new position in Smith Douglas Homes in the fourth quarter valued at $236,000. Arcadia Investment Management Corp MI acquired a new position in shares of Smith Douglas Homes in the fourth quarter valued at approximately $27,000. Bank of New York Mellon Corp purchased a new stake in shares of Smith Douglas Homes during the fourth quarter worth approximately $328,000. First Eagle Investment Management LLC lifted its holdings in shares of Smith Douglas Homes by 52.8% during the fourth quarter. First Eagle Investment Management LLC now owns 148,882 shares of the company’s stock worth $3,817,000 after purchasing an additional 51,419 shares during the period. Finally, Artisan Partners Limited Partnership raised its position in Smith Douglas Homes by 4.6% during the 4th quarter. Artisan Partners Limited Partnership now owns 813,082 shares of the company’s stock worth $20,847,000 after buying an additional 35,702 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.